Rumors fly: Is MSN for sale?

Microsoft refuses to comment, but rumors were flying Friday that thesoftware giant was trying to unload its online server, the MicrosoftNetwork, for $1 billion. A spokesman for Microsoft simply said that therumor was "wildly inaccurate" and "poor reporting." Naturally, I feltcompelled to mention it in WinInfo.

The rumors began when ABC News quoted an unidentified MSN executive assaying, "There's no doubt [the sale] will happen. It's just a matter of theright time. If they announce plans for a sale at the wrong time there couldbe a huge backlash and investor mayhem."

ABC indicates that potential buyers include America Online and Netscape.MSN has grown from a shoddy little Windows 95 add-in to a wonderful,browser-based online service, though I'm one of the few people to noticethat. MSN's subscriber base has remained stagnant at 2.5 million for almosta year. That's a shame, frankly, as it has the nicest interface of anyonline service right now. Regardless, the subscription level is disappointing since an installation icon for MSN appears on the desktopof every Windows 95 user.

Analysts are playing both sides of the fence as the rumors circulate.Most believe that Bill Gates will not admit defeat so quickly, thoughselling the unit would relieve the bottom line a bit: MSN loses millionsof dollars each year. It would also be a sign that Microsoft cannot simply force itself into the content business and will likely remain asupplier software and services for the foreseeable future