** Update: While preparing this post for publishing, news reports confirmed that there are indeed talks between Microsoft and Rupert Murdoch regarding entering a search deal. Obviously, as we said below, he had something up his sleeve! Let’s wait and observe how all of this will unfold!
With the increased popularity of the web, came the demise of the news industry as we know it. Reports have shown a serious decline in newspapers’ profitability in the past couple of years as they struggle to keep up the number of their subscribers at a time people moved toward the web and no longer expect to pay for news content!
The threat is very bad; the news industry is seriously at risk. Interesting enough, the decline in profitability, at the news content providers side, is matched with an emergence of a profitable model of web news aggregators led by Google. Rupert Murdoch, the founder and CEO of the world’s second largest media conglomerate, News Corp, has been dismayed with the course of events and the amount of money news aggregators – especially Google – have been making at the expense of his news corporations. He is all set up for some action and is ready for the big fight!