Google Buys 5% of AOL



“Google and Time Warner have finally reached an agreement on what to do with AOL. As expected, and over the protests of Steve Case and Carl Icahn, Google will fork over US$1 billion to the entertainment conglomerate, along with a coupon for US$300 million worth of free AdSense advertising. That princely sum entitles Google to call themselves 5 percent owners in AOL, and ensures the long-term stability of the two companies’ advertising and search partnerships. AOL had been eyeing Yahoo! and Microsoft’s MSN as possible replacements for those services and indeed as prospective partners, but that game is all over now. It looks like Google is putting some of that massive pile of cash they’ve been sitting on to work.”

I love google I love everything Google I think they are a great company but this kind of move makes me very nervous. AOL is the devil, I hate everything AOL. How can the one think I love and the one think I hate come together. I don’t like this at all.


Did you write that response in Firefox? :wink:


…yes, why?

oh…installing opera


Its just business. TWX accounts for a fair number of sales and 10+% of the profit of GOOG, so this makes sense. The market thinks so as well, as Google got upgraded today by various institutions as a result of this deal. Had TWX completed the deal with Microsoft, GOOG’s value would have been reduced.

It’s no different then other large companies that try to secure deals with their long time best customers.


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