AOL, Reuters Hook Up

At long last, you may soon be able to sign off a message to your broker with "C U L8er, QT!!!"

AOL Time Warner (NYSE: AOL) and Reuters (Nasdaq: RTRSY) announced a deal today that will connect their instant messaging systems.

It's a big development for AOL, moving its AIM and ICQ products beyond the realm of its own network for the first time. For Reuters, the move is a good one, too, giving it further selling points for its many business information and communication products.

Reuters launched its own workplace instant messaging system last fall, but its user numbers understandably pale in comparison to AOL's. It reportedly has around 50,000 active users, while AOL has about 60 million active users. AOL's been giving away its instant messaging services, while Reuters includes its services as part of its offerings to financial firms.

Now, the two worlds will be able to interact. A stock broker using Reuters' instant messaging service, for instance, will be able to communicate with an AOL user/client, and vice versa. AOL users will also be able to add Reuters users to their "Buddy Lists." Communications will be secure and storable, in order to meet financial regulatory requirements.

The service will launch in the first quarter of 2004. Neither company revealed financial terms of the deal, but it's safe to assume that AOL will finally make some revenues from instant messaging, a moment many have long been waiting for.

David Gardner recommended AOL Time Warner in the August 2002 issue of Motley Fool Stock Advisor.