Google & AOL Make it Public
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Written By Reprise Media | December 19, 2005 | Share This
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Word on the street is that Google is very close to finalizing a deal with AOL whereby the company will be acquiring a 5% stake in America Online for around $1 billion dollars.
Even more interesting than a clear winner emerging from the three-way competiton (Google, Microsoft, Yahoo) for AOL’s affections is that, according to this article in the New York Times, Google will be giving what reporter Saul Hansell refers to as “favored placement” to AOL’s content in its search results.
Is this the beginning of the end for Google’s oh-so-pure search results? Or did that happen a long time ago?
That kind of stuff matters little to Google right now, says John Battelle. The company has its eyes on the prize:
“The company knows that by guaranteeing its business to AOL for the foreseeable future, it has in essence guaranteed AOL’s bottom line, providing a healthy earnings forecast for AOL and Wall St., should Time Warner decide to spin its erstwhile child back out as an independent public company.”
Related: Google and MSN: Keeping Their Friends Close (And Their Enemies Closer)
AOL Courtship Continues
Is AOL in Talks with Google & Comcast?
Topics: Investment, M&A |