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Time Warner Inc. is negotiating exclusively with Google Inc. to broaden a lucrative advertising partnership with Time Warner's America Online unit, abruptly ending negotiations early Friday with Microsoft Corp., officials close to the negotiations said.
what the h_ll were they thinking? Could've gained a great source of cash and give Google a black eye while still ending up with tens of billions in the bank. A deal like this doesn't come by everyday
Obviously AOL is getting more of the pie or more opportunity to have pie with G coming back in the fold. So if anything this would make G's other revenue streams especially a very stable and large Adsense stream, all the more important.
Web search leader Google Inc. (Nasdaq:GOOG - news) is in exclusive talks to buy a 5 percent stake in Time Warner Inc.'s (NYSE:TWX - news) AOL Internet unit for $1 billion, a source familiar with the matter said on Friday
If Microsoft wants any shot at the search market they must improve their search engine. The results stink!
In two competitive markets I work with one site uses doorway pages to hold 8 of the top ten search results for very competitive keywords.
Of course maybe that means people will click on their ads more :-)
Oh well... AOL is a slow sinking ship anyways. Once the non-web savvy generation moves on the amount of searches they provide will fall off substantially.
Now Google has $1 Billion riding on a ship that they are going to have to constantly scoop water out of to keep it afloat.
Perhaps it's worth it to keep their level of search domination on the upward trend. Google has suffered no major loses yet, and if their momentum is broken - much will be lost.
Just a guess, but I'd bet I wasnt the only one.
AOL is Google's biggest customer, accounting for about $420 million, or about 10 percent, of Google's revenue during the first nine months of this year, according to regulatory filings
Well, G now pays AOL $1 billion instead the other way around. Interesting to watch how advertising scheme -moneywise- will play between G and AOL if deal follows thru.
I think Google will eventually swallow AOL.
On the one hand you have a known entity - Google - with a huge Advertiser base and known results.
On the other hand you have MS with virtually no mainstream advertisers and a Beta PPC program.
For me it's a no brainer - you gotta go with G.
For our business personally I love the idea that AOL will stay with AdWords. We get a lot of business from AOL customers and the thought of having to start a new PPC program with MS was not appealing. My life is already too busy monitoring AW, Over/Y, AS and our B&M business.
This keeps everything a lot simpler with MSN providing little or no traffic.