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AccessMyLibrary    Browse    [0-9]    eWeek    JUN-01    AOL, Microsoft work on hurdles - Move closer to deal bundling AOL client, XP.(Company Business and Marketing)

AOL, Microsoft work on hurdles - Move closer to deal bundling AOL client, XP.(Company Business and Marketing)

Publication: eWeek

Publication Date: 04-JUN-01

Author: Holland, Roberta
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COPYRIGHT 2001 Ziff Davis Media Inc.

Microsoft Corp. and AOL Time Warner Inc. moved closer last week to an agreement to bundle the AOL online service client with the forthcoming Windows XP operating system, which would significantly strengthen the two most powerful online companies.

But sources close to the negotiations say the deal is facing big hurdles as well as opposition from senior executives within Microsoft, including Jim Allchin, the company's senior vice president for Windows.

Despite the win-win prospects of the deal for the pair, some of the snags in the negotiations may be rooted in a long-standing beef. Internet service providers, including AOL, whose offerings were bundled with Windows 95 had agreed to certain marketing conditions in return for placement in...

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