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Friday, October 21, 2005

Yahoo! Enters Bidding War For AOL

A month ago, September 23rd to be exact, I wrote an entry regarding AOL and how Microsoft and Google were competing (most likely bidding) against one another in their attempts to partner-up with the popular web portal. Now, this week, Yahoo! has reportedly left the sidelines and entered itself in this ongoing struggle for a piece of American Online.

That's right, Yahoo! is in talks with AOL, a unit of Time Warner, and is looking to attain AOL's millions of search and portal users, not to mention the near $400 million in ad revenue that currently goes Google's way. In fact, I bet that the only reason why Yahoo! is now even interested in AOL is to ensure that the "kool-aid" that is generated from AOL's / Google's paid-search agreement does not go back into Google's refrigerator... or Microsoft's for that matter.

Time Warner has yet to comment on whether or not they have received offers from Internet search giants Google, MSN, or Yahoo! or if they are even interesting in partnering up or potentially selling AOL. It seems for Yahoo!, Google and Microsoft, a bid for AOL is merely a defensive move against the others.

One thing is for sure and that is if Yahoo! is in the running, the stakes could get high. In general, when you've got multiple players going after a property, like anything, you get increased competition and companies tend to bid higher. Well when we're talking Yahoo!, Google, and especially MSN, who as we all know is a division of Microsoft and has seemingly bottomless pockets, we're talking a huge increase in competition and bids.

posted by Karl Ribas
Friday, October 21, 2005
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