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AOL Nears Major Deal With Google

     
9:15 pm on Dec 16, 2005 (gmt 0)

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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.


AOL Nears Major Deal With Google
[wap.oa.yahoo.com]
9:18 pm on Dec 16, 2005 (gmt 0)

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Boy, must say that is quite disappointing!

Was looking forward to some change in the market share!

9:22 pm on Dec 16, 2005 (gmt 0)



"Microsoft, which increasingly views Google as a fierce online rival, has been negotiating with Time Warner since January but did not propose any cash investment in AOL, officials 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

9:26 pm on Dec 16, 2005 (gmt 0)

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what the hell were they thinking?

Microsoft is business savvy. I promise you that there is a good reason that this deal fell through, other than MS not wanting to invest money in a losing venture.

9:27 pm on Dec 16, 2005 (gmt 0)

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aahhhh

What a relief.

9:28 pm on Dec 16, 2005 (gmt 0)

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This is seriously big news. G seems unstoppable right now.
9:29 pm on Dec 16, 2005 (gmt 0)

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This is all part of the Planet Google Project or PGP. ;)
9:32 pm on Dec 16, 2005 (gmt 0)

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Hmm. With AOL in their pockets, do AdSense publishers, aka the content network, become less important to Google?
9:49 pm on Dec 16, 2005 (gmt 0)

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> do AdSense publishers ... become less important ...

hmm, maybe drop smart-pricing in favor of "ouch that really smarts!" pricing? :)

9:49 pm on Dec 16, 2005 (gmt 0)

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Does TW break-out AOL's performace on its financial records? I'd be interested to see how profitable/not profitable AOL is these days.
9:53 pm on Dec 16, 2005 (gmt 0)

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>>do AdSense publishers, aka the content network, become less important to Google?

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.

9:56 pm on Dec 16, 2005 (gmt 0)

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Just saw this article [news.yahoo.com].

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
10:11 pm on Dec 16, 2005 (gmt 0)

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Bad news, Google is a monopolist and this is bad for everyones business.

Isn't there an institution in US to stop monopolists? In Germany this is very usual. Maybe someone should give them a call.

10:19 pm on Dec 16, 2005 (gmt 0)

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I wouldn't consider Google a monopoly ...yet.

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 :-)

10:24 pm on Dec 16, 2005 (gmt 0)

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This is the worst news today.
10:29 pm on Dec 16, 2005 (gmt 0)

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BOOOOOOOOOOOOOO!

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.

10:35 pm on Dec 16, 2005 (gmt 0)

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"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."

[washingtonpost.com...]

10:37 pm on Dec 16, 2005 (gmt 0)

WebmasterWorld Senior Member ogletree is a WebmasterWorld Top Contributor of All Time 10+ Year Member



Arrrrgggg. That so stinks. I am so tired of getting bad news from Google.
10:38 pm on Dec 16, 2005 (gmt 0)

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Man, I wish MSN would find a way to pony up the dough on this. Competition is sorely needed.

This has to be one of the best shots MSN has at increasing reach.

11:06 pm on Dec 16, 2005 (gmt 0)

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Good news for AOL searchers as they will have less spam to deal with. I was just dusting off a slew of unused domains to use exclusively for those #1 spots on an MSN/AOL with soma actual consumers on the other end. Geez, talk about low hanging fruit.

Just a guess, but I'd bet I wasnt the only one.

Oh well.

11:07 pm on Dec 16, 2005 (gmt 0)

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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.

11:08 pm on Dec 16, 2005 (gmt 0)

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Yup, smart money saw this coming when the Google stock didn't get punished.

Anyways, I agree big time with everyone on this thread. Though I never thought I'd see the day when I was going to start cheering on Microsoft..

(<- ex Netscape employee)

11:12 pm on Dec 16, 2005 (gmt 0)

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Google, which operates the Internet's dominant search tools, also agreed to highlight AOL's Web properties as sponsored links

I'm feeling a little dumb at the moment. (More than usual.)

Can anyone explain what the quote above (from the article) really means?

11:24 pm on Dec 16, 2005 (gmt 0)

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My guess is just like you see Google links at the top things likes News or Stocks or whichever, they'll now be pointing at AOL.

For example, try googling "GOOG" and then click on the link. You'll get Yahoo Finance at the top. Maybe that'll go to money.aol.com now.

11:28 pm on Dec 16, 2005 (gmt 0)

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"Google is going down the Tubes."

"The end of Google"

"Google looses biggest battle in its history"

"Ect, Ect, Ect........"

Im laughing, I really am.

11:42 pm on Dec 16, 2005 (gmt 0)

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I think this is very good news for those who've hitched on to Google's star. Many people think the AOL hoards are dummies. I believe many of them are very smart, well off and influential - they just do not have time to become computer geeks like most of us. And they TRUST AOL.

I think Google will eventually swallow AOL.

11:47 pm on Dec 16, 2005 (gmt 0)

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Damn, I was really looking forward to the uproar when half of AOL users' AOLMSN searches turn up:

We couldn't find any results containing toys
11:55 pm on Dec 16, 2005 (gmt 0)

WebmasterWorld Administrator brett_tabke is a WebmasterWorld Top Contributor of All Time 10+ Year Member Top Contributors Of The Month



the plot thickens...

[wap.oa.yahoo.com...]


Web search leader Google Inc. is in exclusive talks to buy a 5 percent stake in Time Warner Inc.'s AOL Internet unit for &#36;1 billion, a source familiar with the matter said on Friday.

12:03 am on Dec 17, 2005 (gmt 0)

WebmasterWorld Senior Member tropical_island is a WebmasterWorld Top Contributor of All Time 10+ Year Member



Look at this from TW's point of view.

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.

12:05 am on Dec 17, 2005 (gmt 0)

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Cash or stock deal? If stock, whose stock would you rather have if you were AOL?
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