Microsoft and Bell split up their website

Microsoft and Bell Canada are splitting their MSN/Sympatico website portal in two and going their separate ways to compete against each other for online ad revenue.

The companies announced on Monday that their shared website msn.sympatico.ca will cease to exist as of Sept. 1. Microsoft is launching a new site, MSN.ca on Tuesday while web surfers heading to the old address will be redirected to Bell's sympatico.ca.

The companies said their 2004 deal has been eclipsed and made largely redundant by how the online world has evolved. At the time, Microsoft believed the way to make money online was to sell subscription services such as anti-virus software and parental-control technologies, so hooking up with Canada's largest internet service provider was a good way to deliver potential customers.

For its part, Bell hoped Microsoft could supply the software for new services that could be sold through the joint portal.

Both companies miscalculated the impact of online advertising, which has since emerged as the main revenue generator for websites. Microsoft and Bell will now compete against each other for online ad dollars.

"It's clear that creating two distinct portals now allows market expansion by both partners in terms of new online advertising and revenue opportunities," said Kevin Krull, president of Bell residential services, in a statement.

The companies have also signed a new three-year deal that will see them share web traffic. Sympatico will also use Microsoft's Bing search engine.