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AOL to Drop Google and Sign with MSN

         

Brett_Tabke

3:35 pm on Dec 6, 2005 (gmt 0)

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According to a Wall Street Journal Article, AOL will announce a new pact with MSN to replace Google Search and Advertising solutions with with MSN Search and Advertising solutions on AOL RSN (real soon now).

also reuters is repeating [today.reuters.com] the story:

NEW YORK (Reuters) - Time Warner Inc is closing in on a deal with Microsoft Corp. to team up on an online advertising service to compete with Google Inc, the Wall Street Journal reported on Tuesday, citing people familiar with the talks. The paper said the two companies were now focusing on a deal that would combine their advertising-related assets, with little or no money changing hands. It said they expected to reach an agreement before the end of the year, but that it was still possible that Time Warner's America Online unit could strike a deal with competitor Google instead. Time Warner has been holding talks with both Microsoft and Google over AOL, sources familiar with the situation have told Reuters and other media.

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Atticus

5:59 pm on Dec 6, 2005 (gmt 0)



Finally we see the Gates strategy in the war on Google. The war will not be waged primarily by product improvement but by going head to head in various board rooms.

Gates has wisely decided to do what he does best. For the first time I see the possiblilty of MS winning this fight.

poster_boy

6:08 pm on Dec 6, 2005 (gmt 0)

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Isn't this assumption of a done deal a bit premature?

It said they expected to reach an agreement before the end of the year, but that it was still possible that Time Warner's America Online unit could strike a deal with competitor Google instead.

ogletree

6:12 pm on Dec 6, 2005 (gmt 0)

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I can not think of better news that is so cool. I agree that changes things in the war. I thought MS never had a chance they may have a small chance of winning by doing this. I'm guessing what will happen is they buy out Yahoo or something. Too bad he did not think to buy overture before Y did.

garytexas

6:26 pm on Dec 6, 2005 (gmt 0)

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Looks like Google gets about 11% of their traffic from AOL, that will probably carry over to MSN.
Combined with MSN Search cable add campaign and new software that empasizes MSN search.

Looks Like things will really heat up!

zikos

6:31 pm on Dec 6, 2005 (gmt 0)



THAT IS GREAT NEWS AT LAST! :)

zikos

6:32 pm on Dec 6, 2005 (gmt 0)



or better to say the begining of the end of Google's monopoly game.

iblaine

6:37 pm on Dec 6, 2005 (gmt 0)

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Wow, this is great news. This move will likely hurt my traffic but it's the right thing to do. A balance of power is healthy.

webdude

6:48 pm on Dec 6, 2005 (gmt 0)

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Fantastic. THE engine needs some competition out there. It can only be good to split up market share.

poster_boy

7:11 pm on Dec 6, 2005 (gmt 0)

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You all can count Google out early, if you like, but I never doubt the BIG G.

Google is still very much in the running, the sources said, contradicting Tuesday's Wall Street Journal report that said signs pointed to a deal with Microsoft.

At least one more round of discussions is planned with each of the two parties, one source familiar with the plans said.

[news.yahoo.com...]

Rick_M

7:21 pm on Dec 6, 2005 (gmt 0)

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It will be very interesting if they continue to use google's paid search results with MSN's organic search results.

Google probably already knows this, but it will become even more clear how different organic results impact the paid listing click through rates.

Google and AOL will also become aware of whether MSN's organic results steer people towards the paid links or away from them. Interesting either way, not that any of us will ever see the data.

At this point in time, my sites are doing much better on MSN, but I think the two will continue to have pretty significant algo changes over the next few years. Spam in the search engines is a huge problem and it'll take drastic measures to deal with it.

adamxcl

7:27 pm on Dec 6, 2005 (gmt 0)

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Bad move for AOL as it's just another reason for people to dump their service and go direct with their phone or cable company. At least until MSN gets serious about good search results, new internet/AOL users will go "why do people like internet thing, all I get is junk. I can't find anything substantial" and then they won't get hooked on the net, limiting all our growth for a while.

tigger

7:31 pm on Dec 6, 2005 (gmt 0)

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what great news - G has had it all for too long hopefully we will see a better spread of searches now :) this has made my day!

ByronM

7:49 pm on Dec 6, 2005 (gmt 0)

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horrrayyyyy

Google is over rated anyhow.

zikos

7:59 pm on Dec 6, 2005 (gmt 0)



from the moment that is official I'll go on AOL broadband.

zikos

8:00 pm on Dec 6, 2005 (gmt 0)



tigger:cross fingers and wait.Amen.

mfishy

8:03 pm on Dec 6, 2005 (gmt 0)

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<<I wonder how many users AOL will lose because of this?>>

errr...no offense intended but aol users are not known for their Internet savvy...(they are however known for their unbelievable spending habits) :) Seriously, there are a lot of aol users that have kept using many of their products although clearly inferior to free alternatives.

Very good news, at least the market domination is broken up a wee bit more....jeesh, one would think some of you want the old days of yahoo, aol and google all being one in the same and controlling almost all web search traffic...

Robert Charlton

8:15 pm on Dec 6, 2005 (gmt 0)

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Time Warner has been holding talks with both Microsoft and Google over AOL, sources familiar with the situation have told Reuters and other media.

This is a standard negotiating practice in Hollywood, where at least part of Time Warner has its roots. A project is never shopped to just one studio. It is always shopped to at least two, with the intention of creating a bidding war.

Looks like Time Warner is playing this one beautifully.

sem4u

8:28 pm on Dec 6, 2005 (gmt 0)

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Bad news for Google if it goes through, but I like MSN taking more market share with its search products.

King of all Sales

8:32 pm on Dec 6, 2005 (gmt 0)

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Regardless of whether MS wins this battle or not, they are gunning for Google. In a recent interview, Bill Gates said that he considers Google his competition - not Sony or Linux, etc., etc., but Google. That's because MS has figured out that search is capable of producing wads of cash.

If you think Google is big, Microsoft is bigger and they are a lot more diversified. Google ultimately has one product - search. And from where I sit, they're not doing to well at it right now.

TinkyWinky

8:39 pm on Dec 6, 2005 (gmt 0)

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jump over to google.com and avoid aol search.

LOL... do me a favour.

Why do you think AOL exists. Some people simply want to turn on their computer, search and find... they will not bother about moving away as they will on the whole probably not notice the slight (yes slight) decrease in quality of the results they see.

IMHO this can only be good for the whole search market.

beren

8:49 pm on Dec 6, 2005 (gmt 0)

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aol users ... are however known for their unbelievable spending habits

Thank you. I have measured this on several websites, and AOL users are the BEST traffic there is. As far as PPC, I am willing to pay 2.5 to 3 times as much for AOL clicks as I pay for google.com clicks. I mentioned this on the AdWords forum, but people seemed to think that the quality of AOL traffic was a myth.

cws3di

9:19 pm on Dec 6, 2005 (gmt 0)

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.
beren - I absolutely agree with you - AOL traffic (and MSN) has the best demographics for certain niches.

In general, those users are more mature, and more ready to buy when they are searching.

IMHO, yahoo has a younger audience of not-so-serious, casual surfers.

G's demographics are more varied, so the traffic from G has both of the above.

Other niches than mine may have better results from Y, but I want the AOL and MSN users. :-)
.

macdave

9:44 pm on Dec 6, 2005 (gmt 0)

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Seriously, there are a lot of aol users that have kept using many of their products although clearly inferior to free alternatives.

Sounds like the same customer profile as that of a certain software monopoly. AOL/MSN could be a marriage made in heaven...

np2003

9:46 pm on Dec 6, 2005 (gmt 0)

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MS will not let GOOGLE win this. They have more cash reserve than Google and will do whatever they can do to secure the deal. However, as AOL owns Netscape and they just recently settled a case with MS, there is probably a level of "hatred" still amonst the AOL board.

I also notice MSN Search over the past 6 months has dramatically improved.

TammyJo

10:09 pm on Dec 6, 2005 (gmt 0)

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I would love to be a fly on the wall as Time/Warner discusses each possiblity with MSN or Google~

Cha - Ching

foxtunes

10:24 pm on Dec 6, 2005 (gmt 0)

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Big Bill has to make a play like this, and go all in to show he's serious.

wingslevel

10:26 pm on Dec 6, 2005 (gmt 0)

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In order to keep those aol users in the fold, msn is going to have to give their spider a kick - msn serps are quirky and not deep enough for a mainstream market like aol - i think the aol users are going to be disappointed....

but then, what percentage of aol users do you think even know how to navigate to google to do their own search there?

MLHmptn

10:47 pm on Dec 6, 2005 (gmt 0)

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Bye Bye Google! :>~

walkman

10:57 pm on Dec 6, 2005 (gmt 0)



I'm happy and here's why:
first, maybe a month on top of the SERPS with google will give more than entire MSN year, but now MSN will be forced to improve and traffic can be spread. I will no longer get slammed totally. Google is weird like that, at least for me: either on top or all the way on the bottom, and AOL does have a user base.

Steelbank

11:58 pm on Dec 6, 2005 (gmt 0)

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I am extremely happy this is happening for a few reasons:

1) G has been favoring top corporate sponsors for a long time now. All the results in G are from huge corporate sites: i.e. amazon, ebay etc...

2) MSN results are more relevant

3) It's about time G is put in their place

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