tradervic - 6:52 pm on Dec 17, 2005 (gmt 0)
G put the entire company on the line when they made the first deal with AOL that included a revenue guarantee. This time, AOL wanted another revenue guarantee so instead, G gave them the guarantee but got something back for it (5% of AOL). As some have on this thread have already posited, AOL and G will work alongside each other more closely under this deal (VOIP, IM interoperability to compete against MSN/Y, etc). I was raising my eyebrows when MSN made the IM deal with Y when they were trying to sew up AOL. Anyway, my opinion is that as a result of this deal, the negotiations between M and Y started yesterday. That is M's last chance in the space and after this loss, I expect them to pay through the nose for Y. Y probably goes out at $50 - 60 a share (75 - 90 bill) and then we have a two horse race and everyone is happy. Meanwhile, if I am G, I go after Apple to attack M on the Vista front while they are busy integrating Y. This is all '06 business.