NBC buys controlling stake in MSNBC. Is Microsoft getting out of content?

NBC Universal has acquired a controlling interest in its MSNBC television venture with Microsoft, with the option of acquiring 100% of the cable channel within two years.

NBC and Microsoft have done a good job with MSNBC and MSNBC.com. It is now one of the most widely read and watched news service on the internet and cable TV. I'm sure NBC Universal have paid a good chunk of money.

For Microsoft to cash in now when the value is high is sensible. It is interesting that Microsoft is getting out of content as the world moves more towards convergence. Would MSN be better off if they still controled assets such as MSNBC and even Expedia? I think they probably would.

Convergence is here to stay and will only accellerate. I like Yahoo's approach. They are getting more and more into content, both created by them and their users. They are also piling into joint ventures with TV stations etc. I think this is the future. Be careful Microsoft.

I believe you need a mixture of syndicated content from affiliate content providers plus some of your own, plus user generated content. That has to be the converged portal of tomorrow and Yahoo is the leader.