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Microsoft settles with Daum for $30M

         

bill

1:34 am on Nov 14, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



Back in 2004 when we first heard that Daum was suing Microsoft [webmasterworld.com] we were uncertain what they expected to get out of it. Despite the sentiments of many that the case was without merit and/or frivolous the end result looks pretty good for Daum. Microsoft is going to be paying Daum $10 million in cash, another $10 million in an advertising commitment and $10 million in other business agreements.

article [news.yahoo.com]

"This agreement marks the end of our legal dispute and marks the beginning of a new era in the relationship between Daum and Microsoft," Roll said, emphasizing the two companies have "become friends."

The companies will also create a new online partnership, including select content from Daum appearing on Microsoft's MSN online service as well as other marketing and promotional activities, the companies said.

Is this the new way to start a collaborative project with MS? ;)

GrendelKhan TSU

3:33 am on Nov 14, 2005 (gmt 0)

10+ Year Member



lol. yah.. looks like I'll eat my words on them just going through the motions. doh! but still, funny thing is..I still don't see much news on this. $30 million is not a bad chunk of change...and yet news is still dominated by the non-existent (in Korea) Google. (see below)

related: could this be related to why everyone is using NATE as their preferred chat service nowadays? heh.

(naw...that's probably more cause of Cyworld, but still I'm sure it didn't help to be so distracted. I can look into the numbers, but as far as I can tell...everyone is using Nate anyway.)

Is this the new way to start a collaborative project with MS?

given everything... may not be too to crazy an idea. lol.

-- MS seems to be settling all these types dispute worldwide. (cleaning-house so to speak)
-- MS threatens to pull out of Korea
-- settlement with Daum (guaranteeing ad placement).
-- Daum launches in US with PLANET...wouldn't hurt to be in good with MS.
-- both losing out to Nate nowadays in IM market.
-- google everyhwere...and on the horizon in Korea

Related?
-- new articles every other day in Korean newspapers about Google this and that... taking over everything -- worldwide.

Even today a huge front pager in one of Korea's biggest newspapers with a title roughly: "Google is a hurricane rippin through the world making yahoo and ms afraid" and the article goes on and on to about full page about google this and that (stuff that is "old news" around here. lol). Interesting to note: there are just like two-lines about their about stuff about in Google Korea specifically. heh.
(this is true for most Google articles in Korean newspapers).

Aside: hilarious though...in the continuance of the article (page 3) the google article fills about 3/4 page and on the SAME page there is a huge 1/4 page (paid-for) MS ad for windows servers.

it LOOKS like MS is turmoil out here if just headlines etc are to be viewed. Lawsuits, threatens to pull out, low market share of portal stuff, MSN IM on decline to Nate, google everywhere... and can't get good press coverage.

Right now, it looks like Big G has a small window here in Korea to captialize and make something happen here before (more?) collaborations start forming or the niche closes up. I've been saying they have been keepin a behind the scene profile here for years.... but given everything, I think its about time to move into the forefront...if ever (in the korean market).

from what I know about press here too... maybe they are starting some early moves and that's why they are getting those big articles. Most of em are actually "paid for" (not "officially"...but paid for none the less).

bill

8:42 am on Nov 14, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



That sounds an awful lot like the big G marketing juggernaut building up steam in Korea.

This settlement didn't seem to be all that much about IM to begin with. I think that's what turned a lot of people off about the suit in the first place. It did look like Daum was grasping at straws at the time. Looking at it now makes me wonder whether this wasn't part of the original strategy.

IM loyalties are pretty tough to break. Once people build up a list of friends on one you really can't get them to switch. Unless there's a move in the market to open the clients up, as MS is doing with Yahoo now, you won't see much shift in the markets regardless.

GrendelKhan TSU

9:31 am on Nov 14, 2005 (gmt 0)

10+ Year Member



This settlement didn't seem to be all that much about IM to begin with. I think that's what turned a lot of people off about the suit in the first place. It did look like Daum was grasping at straws at the time. Looking at it now makes me wonder whether this wasn't part of the original strategy.

agreed.

IM loyalties are pretty tough to break. Once people build up a list of friends on one you really can't get them to switch. Unless there's a move in the market to open the clients up, as MS is doing with Yahoo now, you won't see much shift in the markets regardless.

well..cyworld did it without opening things up. Again, that was purely from the strong integration with their mini-hompy stuff. but that is certainly an exception.

GrendelKhan TSU

4:51 am on Nov 30, 2005 (gmt 0)

10+ Year Member



in a new development...

South Korea's antitrust agency said Wednesday it is postponing a long-awaited ruling on Microsoft's business practices [in Korea] until next week, after the review committee failed to reach an agreement...

Despite Microsoft reaching a $30 million settlement with Daum over the antitrust allegations in early November, the commission has said it will rule on the case. .

$30 in the hole AND MS still might get the shaft. heh
Article [news.com.com]

[edited by: bill at 4:57 am (utc) on Nov. 30, 2005]
[edit reason] tidying up [/edit]

bill

4:56 am on Nov 30, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



I don't think this is the first time they've postponed this particular decision. I get the feeling that it may not be too favorable to MS.