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Microsoft turns to a Mickey Mouse company

No... they're not getting pally with AOL :D

Microsoft's MSN.com portal on Thursday inked a deal with Walt Disney's ESPN.com sports page that will allow the companies to promote technology and content through their respective sites.

The cross-marketing agreement underscores Microsoft's ongoing attempts to partner with media companies by offering them technology in return for distribution. Microsoft executives have dismissed ideas of creating content and instead touted ways their technology can deliver content online.

"MSN is not in direct competition with media companies," said Sarah Lefko, an MSN product manager. "We're able to offer them technology and great consumer services for them, while they can focus on their content."

Nevertheless, Microsoft's courtship of media partners is seen as a direct attack against AOL Time Warner, causing many competitive concerns in the industry. Meanwhile, AOL Time Warner has backed technologies for delivering Web content that compete with Microsoft's. Thursday's deal could deepen those fault lines.

News source: CNET News.com

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