AOL: Up For Grabs
I have some interesting news to blog about this week, which I am sure you all have already heard about on some level or another. It appears that on Thursday of last week Microsoft began talks with Time Warner regarding a possible merger between AOL and MSN. This suggestive merger is speculated to be a counter to the very serious threat that Google poses in the portal and search market.
This week, in an attempt to stop a Microsoft takeover and to protect the almost $400 million in revenue that Google gets from its biggest partner, Google is speculated to try and counter Microsoft with a bid for American Online.
Google began providing search services for AOL in 2002, replacing Overture, which was later acquired by Yahoo! and just recently renamed Yahoo! Search Marketing. In 2003, Google and AOL broadened their agreement, as Google had agreed to pay AOL for every time someone clicks on one of its sponsored links. In 2004, AOL generated about 12 percent of Google's revenues, which as I stated above is somewhere in the neighborhood of $375 - $400 million.
With that, it only makes sense for Google to counter any offer that Microsoft may through at AOL. An offer may not only protect Google's revenues for a few years, but may also deny Microsoft's MSN the support it needs to become a bigger competitive threat in the search engine market.
This week, in an attempt to stop a Microsoft takeover and to protect the almost $400 million in revenue that Google gets from its biggest partner, Google is speculated to try and counter Microsoft with a bid for American Online.
Google began providing search services for AOL in 2002, replacing Overture, which was later acquired by Yahoo! and just recently renamed Yahoo! Search Marketing. In 2003, Google and AOL broadened their agreement, as Google had agreed to pay AOL for every time someone clicks on one of its sponsored links. In 2004, AOL generated about 12 percent of Google's revenues, which as I stated above is somewhere in the neighborhood of $375 - $400 million.
With that, it only makes sense for Google to counter any offer that Microsoft may through at AOL. An offer may not only protect Google's revenues for a few years, but may also deny Microsoft's MSN the support it needs to become a bigger competitive threat in the search engine market.
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posted by Karl Ribas Friday, September 23, 2005 Read Comments (0) | Post a Comment | Subscribe  
 
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