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Google Buying 5% Stake In AOL for $1B

Discussion in 'Google' started by digitalpoint, Dec 16, 2005.

  1. #1
    Of course this is mostly to keep permanently keep them as an advertising customer (AOL is the biggest customer of Google)...

    http://biz.yahoo.com/rb/051216/media_timewarner_google.html

    Microsoft has been trying to woo AOL away from Google for advertising, so I'm sure Ballmer and Gates aren't terribly happy today.
     
    digitalpoint, Dec 16, 2005 IP
  2. Crazy_Rob

    Crazy_Rob I seen't it!

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    #2
    GOOG is up almost 2%.
     
    Crazy_Rob, Dec 16, 2005 IP
  3. Old Welsh Guy

    Old Welsh Guy Notable Member

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    #3
    So Google get to keep the AOL search contract then. This was always going to be the wildcard IMO.

    Had MSN got the contract then it would have catapulted them forward, and sent Google spiralling backwards at a rate of knotts. Smart move by google IMO
     
    Old Welsh Guy, Dec 16, 2005 IP
  4. Web Gazelle

    Web Gazelle Well-Known Member

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    #4
    For your info... :D
     
    Web Gazelle, Dec 16, 2005 IP
  5. aeiouy

    aeiouy Peon

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    #5
    My concern would be if they had to make a sweet deal to AOL to keep the business they might reduce payouts to other publishers in order to make up the difference.
     
    aeiouy, Dec 16, 2005 IP
  6. Web Gazelle

    Web Gazelle Well-Known Member

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    #6
    I think it will be nice to keep AOL with Google. We will just have to wait to see what happens with payouts.
     
    Web Gazelle, Dec 16, 2005 IP
  7. Nokia999

    Nokia999 Guest

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    #7
    Microsoft out in cold :D:D
     
    Nokia999, Dec 16, 2005 IP
  8. SEbasic

    SEbasic Peon

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    #8
    Damn, I was actually really looking foorward to MS getting a bit of AOL. :|
     
    SEbasic, Dec 16, 2005 IP
  9. ScottFish

    ScottFish Peon

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    #9
    Do you guys think that this deal will acutally do anything?
     
    ScottFish, Dec 16, 2005 IP
  10. digitalpoint

    digitalpoint Overlord of no one Staff

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    #10
    Nope... only thing it does is secure AOL as a continuing Google customer going forward.

    AOL is by far Google's biggest customer (generating $420M in revenue for Google in the first 9 months of this year).
     
    digitalpoint, Dec 16, 2005 IP
  11. Sharpseo

    Sharpseo Peon

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    #11
    It's kind of a win-win for me, but I think I would have rather had MSN win the AOL battle. I'm an investor in Google, but my sites rank better in MSN.

    By my (rough) calculations, adding AOL would have almost doubled MSN's share of the search market. That woulda been a nice revenue booster for those of us that are relatively new to the publishing game.
     
    Sharpseo, Dec 16, 2005 IP
  12. lorien1973

    lorien1973 Notable Member

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    #12
    I thought AOL was switching to yahoo's paid listings? Wasn't that reported a few months ago? Or was that just talk?
     
    lorien1973, Dec 16, 2005 IP
  13. DPFan

    DPFan Well-Known Member

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    #13
    Wasn't Google getting 10% stake before and now they're only getting 5%?
     
    DPFan, Dec 17, 2005 IP
  14. Las Vegas Homes

    Las Vegas Homes Guest

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    #14
    To play the Debil :rolleyes: Dont forget Microsoft has A LOT BIGGER pockets than Google. If Mr. Gates wants AOL he can outbid Google easy. I believe that if MS believes that AOL is the swing for the search engine he would outbid Google.
     
    Las Vegas Homes, Dec 17, 2005 IP
  15. digitalpoint

    digitalpoint Overlord of no one Staff

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    #15
    Agreed... AOL certainly isn't a "must have" for text ad success (although it helps). Ultimately the winner is going to be whoever can build the best mouse trap. Google is certainly winning at this point with Yahoo a (very) distant 2nd IMO.
     
    digitalpoint, Dec 17, 2005 IP
  16. millst2

    millst2 Guest

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    #16
    Totally have to agree with you their Las Vegas...

    If Billy Gates wants it bad enough or by chance thinks he cant conquer without it, he would buy it.

    There is no way google can compete with MS. But their is still the possibility that gates was outsmarted. Microsoft according to the report was offering AOL incentives over a few years where as Google came out and slapped the $1B price tag on it in cash..

    Any company struggling as AOL is would rather have 1B in cash over a having a few 100m a yr.

    Just makes me wonder if billy gates isnt going to slap something on the table to make aol drop the talks with G,,, since he does have all day monday and tuesday to write a check. Or if he is going to start taking more agressive measures to get their adsense rivalry in check

    I just want MS to get a pub network to rival that of G

    $$$$$$ hear hear$$$$$$$
     
    millst2, Dec 17, 2005 IP
  17. digitalpoint

    digitalpoint Overlord of no one Staff

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    #17
    They will, regardless if they have AOL as a customer.

    I'm a big fan of competition... it only makes the existing things better in order to compete. I'll be glad when Google, Yahoo and MSN all have their advertising systems up and running and out of beta.
     
    digitalpoint, Dec 17, 2005 IP
    Sharpseo likes this.
  18. millst2

    millst2 Guest

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    #18
    my thought exactly shawn,, competition will make the SE value the publishers more,, as I get some sense of this now that yahoo released its beta... theirs a lot of talks on both sides of the fence.. some for yahoo some for google... I think things will really heat up once Yahoo starts adding more publishers and relevant ads.

    Even here we can read a lot of people ecstatic with yahoo.. all yahoo is doing is releasing some of the chokehold google has had,, I am eagerly watching for MS to come in and make a Lethal Swoop.

    I ohh so love competition!!
     
    millst2, Dec 17, 2005 IP
  19. Fahd

    Fahd Well-Known Member

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    #19
    I wonder what else this will initiate! Google and Advertising.com (owned by AOL) could jointly dominate the online CPM and CPC advertising industry.
     
    Fahd, Dec 17, 2005 IP
  20. millst2

    millst2 Guest

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    #20
    well i think it is all about the deepest pockets and we all know who has the biggest!

    If billy gates thought it would be so important to secure that small stake in AOL, he would bury all offers google could throw. Say G makes 1Billion a yr from AOL, and say they give it a life expectancy of this continued income 5-10 years,, and they make a max offer of 5-10 billion,,, bill gates could match that offer with his rainy day account,,, i do not think that google will dominate this market for long,, the other companies may have some catching up to do,, but I dont think MS or Yahoo will really let them make all the strong moves with them just standing on the sidelines watching their future income streams being stripped away.. 2006 I think will be a good year for publishers,, as the big 3 will all be in on the action,, and more competition means better value placed on us website owners
     
    millst2, Dec 18, 2005 IP