Battle Stations: Microsoft vs. AOL

Reuters | at | by Mike

In one corner, the world's top software company with a $31 billion cash horde and a lock on 90 percent of personal computers. In the other corner, an Internet and media titan with a 30 million-strong base of Web subscribers and a deep library of music, movie and news. That's the tale of the tape for what is shaping up as the heavyweight business brawl of the year - Microsoft Corp. vs. AOL Time Warner Inc. The stakes are big-time: both sides hope to dominate the next wave of Internet services that will tie instant messaging, music, e-commerce and other features into a seamless offering. The two companies have already taken the first shots at each other and analysts say the fight is only just starting.

"I predict that we are going to see all-out war for several years before we see cooler heads prevail,'' said David Smith, an analyst with Gartner Group, a technology consultancy.