Google Buying $1 Billion Stake in AOL

Discussion in 'General Mac Discussion' started by iGary, Dec 16, 2005.

  1. iGary Guest

    iGary

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    #1
    :eek:

    Google Buying Stake in AOL for $1 Billion
    By David A. Vise
    Washington Post Staff Writer
    Friday, December 16, 2005; 2:51 PM

    Google Inc. is buying a 5 percent stake in Dulles-based America Online for $1 billion as part of a far-reaching business and advertising partnership that will link the two companies in many ways and will greatly enhance AOL's financial prospects, according to people familiar with the agreement.

    The deal between Google and AOL is a setback for Microsoft Corp., which had sought to replace Google as the search engine on the AOL service and had been in talks with AOL's parent, Time Warner Corp, since January. Google is the leader in search, followed by Yahoo Inc. and Microsoft's MSN Search, which is a distant third.

    Under the agreement, Google will remain the search engine on the AOL service with a revenue sharing from text-based ads provided by Google of about 80 percent to AOL and 20 percent to Google. In addition, AOL will get the exclusive right to sell other types of advertising, including banner ads, for the Google network. AOL will keep 20 percent of the proceeds from those ad sales, while Google will get about 80 percent.

    "This is our dream come true," one source familiar with AOL and Time Warner's strategy said. "Our fates are intertwined."

    AOL is already the largest single source of ad revenue for Google, generating about 10 percent of its ad dollars, according to public filings. AOL's business strategy under its chief executive, Jonathan Miller, is to garner more of its revenue in the future from rapidly-growing online advertising.

    As part of the new agreement, AOL gains the right to sell Google-generated, text-based ads that appear on the AOL service. This change will enable AOL to sell all forms of online advertising itself to any company.
     
  2. amacgenius macrumors 68000

    amacgenius

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    Buffalo, NY
    #3
    AOL is an evil empire that needs to be stopped.
     
  3. illegalprelude macrumors 68000

    illegalprelude

    Joined:
    Mar 10, 2005
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    Los Angeles, California
    #4
    this forum sometimes is the best place to come for laughs

    AOL = Evil
    MS = Devil
    Sony = Satan
    Google = Satants Son
    IBM = Retarded Child of Satan now
    Apple = Angel from the sky
     
  4. dubbz macrumors 68020

    dubbz

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    #5
    Say what? :confused:
     
  5. illegalprelude macrumors 68000

    illegalprelude

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    #6
    satans son :D minor typo.
     
  6. bousozoku Moderator emeritus

    Joined:
    Jun 25, 2002
    Location:
    Gone but not forgotten.
    #7
    t is not an apostrophe. :p

    I'm not sure why you think that Google, IBM, and Apple are in those positions. Apple is hardly a charity or an Angel. If anyone confuses them with anything but a very tough business, I'd say they are confused in other ways, too.

    It's amazing that things have turned enough that, instead of AOL investing in Google, it's the other way round. Hopefully, the relationship doesn't submerge Google.
     
  7. dubbz macrumors 68020

    dubbz

    Joined:
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    Location:
    Alta, Norway
    #8
    :p

    I'll just repeat myself:

    Say what? :confused:

    My impression from these forums is that most people here like Google, so I'm not sure why you say "Satans son", unless you're meaning the "Black (or is that White?) Sheep of the Familiy" kind of son.
     
  8. illegalprelude macrumors 68000

    illegalprelude

    Joined:
    Mar 10, 2005
    Location:
    Los Angeles, California
    #9
    no no, im not saying that. im saying thats the cences from this forum.

    every single company that gets mentioned is evil but apple is the child of god and everything it does people spoog their pants over it.

    dont get me wrong, I love Apple but come on people, not every company and theri action is an act of the Devil and dont think Apple isnt doing the same
     

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