Henry Blodget writes:
1) Merge MSN with AOL in the complex transaction described below. Do NOT enter into a “partnership” with Time Warner.
2) Eliminate duplication: development teams, VOIP efforts, content platforms, network operation centers, bandwidth deals, sales forces, call centers, etc.
3) Spin the combined entity off as a separately traded public company, with Microsoft and Time Warner together owning about 70%-80% (but neither having a controlling interest) and the public and other strategic partners owning the rest.
4) Cut broadband distribution deals with cable companies, telecom companies, and wireless companies.
5) Combine the portal infrastructures of AOL and MSN and gradually migrate toward a single brand in each geography in which one is weak.