AOL to Drop Google and Sign with MSN

[Brett_Tabke]

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.

Previous threads on subject:
[webmasterworld.com...]
[webmasterworld.com...]

[mzanzig]

Many services at AOL are Internet based these days. Consequently, the internal browser has been replaced with a full blown (though highly customized) version of Internet Explorer, supporting all features you would expect.

A different issue seems to be the mail interface which still is proprietary in the client.

[Animated]

hmm i might be wrong but i read somewhere that aol is 20% of googles traffic? so if they lose it to msn
isn't msn about 10% of internet traffic?t then maybe 20% something precent and others and Google the rest. so once aol joins msn they become major players against G

[percentages]

At Last!

I hate AOL, but, eventually they look like they are about to do something sensible.

Why it took them so long to come to an easy decision is another topic!

I suspect AOL is going to get sold off from Time Warner and this is part of the process of making it attractive to MS.

MS should buy AOL from Time Warner, it is good for the long-term, I'll live with the hit on my MS shares in the short-term.

This is a major coup for MS whether they pick up AOL total or not!

[jim2003]

Time Warner Inc. has entered into exclusive talks with Google about the search engine company expanding its relationship with Time Warner’s AOL online division, the Wall Street Journal reported on its Web site Friday.

[iblaine]

"Those talks include, among other things, a $1 billion investment for a 5 percent stake in AOL," said the source.

So AOL is worth $20B? What is Time Warner smoking...

[steve40]

If we are now talking $1 billion investment for a 5 percent stake in AOL , This is now a clash of the Titans , not for the traffic but for face and both trying to prove who is the dominent player online Time Warner must think they have 10 Christmas pressys in one go.

Also whoever loses this will be buying big on the net to catch up so watch for loads of aquisitions from the losing party

Any ideas of who else they may go for in a bidding war to become the dominent player in
Search
Contextual Advertising

steve

[Tidal2]

"So AOL is worth $20B?"

Maybe not but MS just move some of the offer money into the 5% deal, AOL and any AOL shareholders love it.

Flattery is cheap!

[walkman]

>> So AOL is worth $20B? What is Time Warner smoking...

AOL is worth whatever people are willing to pay for it, and TW execs can afford some good stuff to smoke now. Apparently it is a done deal: "(MSNBC) Source: Search giant would pay $1 billion for 5 percent stake in online unit"
[msnbc.msn.com...]

Looks like they bought the right to keep AOL serving their ads, and have a foot in the door when it comes to TW content. $1 Billion seems like a lot, but then, losing AOL would not have been a good thing. $1 Billion in stock can evaporate in minutes.

[onednr]

AOL to stick with Google

<b>Update:</b> Google may pay $1 billion for a 5 percent stake in America Online as part of an exclusive deal with Time Warner that would strengthen ties with the search giant instead of dumping Google for Microsoft.

[steveb]

Gee, an obvious move ends obviously. Good news to finally put those MSN rumors to rest tho.

[RailMan]

OK, AOL is an ISP (a very big ISP)

and there are thousands of smaller ISPs

what's to stop MS / Yahoo offering their own ISP services, or buying out hundreds of smaller ISPs for peanuts and undercutting AOL and eventually putting them out of business?
(Yahoo already do offer broadband with BT in the UK ...)

What does AOL have that other ISPs don't?

[wrockca]

a good chuck of the web users. As far as I understand it looks to be a good move. The ISP business is becoming harder to make money just like hosting. I think it will be a great move by AOL and Google. But this is only my opinion. I they want to make a better engine lets see what they have.

[Receptional]

Since this thread title has just been superceded by:

[webmasterworld.com...]

Dixon.