Microsoft and Yahoo are set to announce on Wednesday a blockbuster interoperability deal that will reshape the landscape of the fragmented instant messaging market. The companies will connect their IM networks so users on each can communicate with one another using text and voice chat free of charge.
The agreement marks the first time major players in the highly-competitive IM industry have officially partnered up to enable cross-network communication. Interoperability has always been a hot topic among instant messaging providers, but had never yielded a compromise.
Yahoo and Microsoft will now command upwards of 44 percent of the market, according to research firm Radicati Group, putting new pressure on market leader AOL, which holds around 56 percent market share with AIM and ICQ. And according to recent comScore Media Metrix numbers, MSN Messenger and Yahoo! Messenger together reach 33.5 million unique users each month, more than the 23 million running AIM.