[Update] MicroSoft Gets a Chunk of Coal for Christmas, Google Extends AOL Partnership

15 comments

All along the MicroSoft getting AOL story was just hype to leverage a better deal with Google. The WSJ reports:

Time Warner Inc.'s AOL and Google Inc. have entered exclusive negotiations about deepening their advertising partnership, shutting out Microsoft Corp. which has been wooing AOL since January, according to people close to the situation.

The deal won't likely be finalized until next week after Time Warner's board meeting on Wednesday.

A person close to the situation says the deal being negotiated would allow AOL to sell advertising among the search results provided by Google on its Web properties. Google is also likely to promote AOL's Web properties among the sponsored links in its search results.

[Update: A follow up WSJ article stated Google is to pay $1 billion for 5% stake in AOL, their ad relationship is extended for 5 years, and Google will help promote AOL on Google.com. A piece some might be forgetting is AOL has a bunch of rich content that will be promoted on vertical searches like Google Video.

I don't think Google did this deal so much for the traditional search advertising aspect as much as they may have wanted to have a deep relationship with a strong traditional media company, which may make it easier for other media companies to follow suit, and helps Google get a better view of how their business practices are effecting traditional media companies.]

Comments

damn

damn

Yea that's really a shame it

Yea that's really a shame it would have made things much, much more interesting in 2006.

Whats Micosoft Thinking...

Getting AOL would have been HUGE for Micosoft down the road...They are all bark and no bite. You have their excs throwing "temper tantrums" like a bunch of babys saying how they are going to "crush" Google. But, when it comes time to pull the trigger...they let Goggle "outdraw" them.

Dan

BTW: Google stock is up over $7.00+ right now on this news.

Double damn.

Double damn.

Triple Damn

Can we really even take MSN seriously now? We're told how they are going to be big players and compete with Google. Then they come out flat around every major turn. It almost seems like a project they put together and realized it would be much harder than they thought. So now they look to have given up. Big disappointment to SEMs everywhere.

WSJ did an update

as referenced above, WSJ did an update article...said Google is to pay $1 billion for 5% stake in AOL

Ho ho ho

Memo:
AOL Execs to MSN Exec.

SIKE!!!

Best,
AOL Execs

ho,ho,ho

in more ways than one

AOL to sell ads

According to this FT article (via Y!), AOL had felt a bit hamstrung since Adwords had to be sold by Google. No longer:

Under the proposed new deal, AOL will be able to sell the search ads too, plugging a gap in its offerings to advertisers...

And, in what might portend a new look for Google:

In addition, AOL will sell display ads on both the AOL and Google internet properties

That might turn out to be the most significant part of the deal.

Now...

If AOL sells 5% to Yahoo for 1 Billion and 5% to MSN for 5 Billion (5 billion to MSN because they have to pay a price for not getting a deal done with AOL 3+ months ago)... They will have almost bailed TW out of the mess AOL put them in in the first place. LOL - LOL

Oh bloody hell Microsoft....

Oh bloody hell Microsoft.... spent too much on that bleedin' 360...

MS, end it

MS better off concentrating on things like getting the words "Blog" and "Google" updated as words in Word® and getting rid of these send error and blue error messages off computer screens.

fucking google! I want some

fucking google! I want some traffic from some other engines. Real shame that is, not that AOL really serves us well in europe but it is like when the tories won the election for the third time. Need a change of government.

1 Billion Dollars Could buy

1 Billion Dollars Could buy ALOT of content - like say 3 weblogs incs, Boing Boing, Slashdot (how funny would that be!), Fark, Digg, WMW, and Myspace. Remember, AOL still has that old media TW millstone around it's neck - It wasn't worth it for MS to pay a $20 billion valuation for AOL.

What kind of synergy would there be between MS and AOL that would warrent that kind of pricetag?

>>What kind of synergy would

>>What kind of synergy would there be

probably not much, but i think the question is

is 1 billion USD < increased costs of competition with google (which will result in a form of price wars for user attention) + net present value of AOL

IMHO, 1 billion is less than the sum of those two, especially the former regarding increased costs of competition with google. IMHO unless msft has something else really big planned, they should not have let this one slip away.

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