The sixteen years joint venture has finally reached its
destination. Microsoft and NBC are parting ways. This split started way back in
2005 when Microsoft sold its share in MSNBC’s cable channel to NBC. MSNBC. com
is going to become NBCNews.com. Microsoft’s MSN is planning its own news site. Many
things still remain unsettled but NBC is happy about crossing the biggest
hurdle. Sources say that it will take another two years to settle everything
between the two networks. The sixteen year relationship is quite tough to settle.
Since the Internet is an important part of their business, both the networks
have decided to have greater control over it.
The share that Microsoft holds in the website is purchased
by Comcast which is the parent company of NBC. Except for the new logo,
NBCNews.com uses the same site without any changes. The site is expected to
have numerous alterations down the lane. They have planned digital distribution
of their programmes. New Apps and websites are going to be launched for mobile
gadgets. NBC is happy about the break up and the freedom to make independent
Journalists of MSN were fighting for an independent
organization since a very long time. Now that they are independent, a new unit
is on its way. They believe in building a new team with new distribution deals.
Bob Visse mentioned that they are going to deliver top class information with
innovative ideas. Microsoft was forced to post MSNBC.com content on its own
websites. This was a great hindrance to the company because they were not able
to satisfy their users. Users demanded multiple news sources and Microsoft was
unable to break the contract terms. Microsoft is expected to use the same strategy
like the Internet companies Yahoo and AOL. Considering the fact that Microsoft
has managed to maintain a good reputation, its new venture might become
popular. However, the answer lies in the future.
For now, NBCNews.com uses the URL of MSNBC.com. By the
beginning of next year MSNBC.com will become the official website of the
network’s cable channel. Microsoft had invested $220 million in the MSNBC
partnership. Did Microsoft earn any profit from it? The answer will remain a
secret till the company opens up. Both the companies have never announced the
state of their employees. Sources say that, about half of MSNBC employees will
be moved to another location. Since Microsoft is hiring new employees, the old
ones are expected to work under NBC. New York Times that offers news headlines
remains common for NBC and Microsoft. Microsoft allows NBCNews .com to remain
in the Redmond office. It is on the lookout for a new office at the location.
This corporate breakup has brought different reactions from
corporate giants around the world. Experts say that the breakup brings goodness
for both parties. Microsoft can sign deals with news providers on MSN.com and NBC
can have control over digital properties. They can allow more advertisers for their
television channel and online portals. The partners have decided to compete
against each other. Let us wait for the winner.