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The companies are partnering to create the world’s largest IM community, affecting nearly 350 million accounts. In addition to catering to chat fans who want to reach more online buddies, the move has enormous business implications. Microsoft and Yahoo are trying to unseat AOL’s top position as U.S. leader in IM users, which holds 50 per cent of the chat market. But MSN Messenger is the most widely used chat client internationally.
The announcement comes as a follow-up to AOL’s deal with Google Chat in December, essentially making the two systems compatible.
Regarding today’s partnership, the interoperability will work for users with the latest versions of the Windows and Yahoo Messenger programs.
Essentially, a Microsoft user could chat with a buddy on Yahoo, view another friend’s photo on Yahoo’s Flickr site, and listen to a song through Yahoo’s music service – all the while viewing advertising whose proceeds can be shared by Microsoft and Yahoo.
It’s a welcome announcement for chat addicts who had to switch buddy lists if they had Yahoo and MSN accounts. And it’s also encouraging for investors in both companies who want to see a boost in their stock portfolios.
