Hi, On a previous post I mentioned that there were rumors that Microsoft will buy or merge its MSN division with AOL. And that AOL generate 11% of Google revenues. So if this scenario became true it will be a big hot to Google cash flow. Well in a recent AP news article. It said that Google is considering use parts of its $7.1 billions in cash to purchase a stake in AOL to avoid a possible deal between AOL and MSN. It looks like both company are targeting AOL. If it happens. With company will you prefer buy part or all of AOL. Microsoft or Google? I prefer Google because i believe it will improve it but keep it different from MSN. I believe is Microsoft get it it will be just a copy of MSN.
I think AOL is worthless.. I wish it would just go away altogether. I think it is dying and has been dying for years... Nobody is going to be able to save it at this point.. so for whomever buys it, it is likely to be a poor investment.
Althought I hate Microsoft, I want it to get AOL, because Google is getting too strong, I think 2-3 search engines having each 30% of the market are better than one which is dominating.
I think AOL is crap myself, but lots of people still dig their products and services. They have $ too and are trying to diversify. I wouldn't count them out just yet... (although I would really like to!)
AOL make Google $280 millions in 2004. Also in this year AOL had make a big $$ on advertising mostly by making aol.com public. For example they make a ad campaign for dog food makes Purina. With was a hit and many other big company had already ask AOL to develop ad campaigns for their products. Also if Google made $280 millions from the AOL search. If they purchase AOL or part of it they will be making more because the revenue spilt will be less or none if they purchase AOL altogether with I believe won't be the case. For Microsoft it will be a good entry point for it newly launched MSN Ad Center.
Google + AOL? Does not seem like credible news to me at all. Care to post a link? p.s. In my book, G is smarter than that
AOL is trying to morph into an internet web presence instead of an ISP. It could help a company such as microsoft in the short term, giving them a boost on things. Google may have interest, but I am guessing their interest is more in keeping it out of microsoft's hands
This is old news... Actually, AOL accounts for around 15% of Google's total annual income. I'd (personally) say it wasn't *that* worthless. MOre interesting IMO are the rumors of MSN buying AOL. That would be a drastically blow to Google and their annual revenue.
http://news.com.com/Google+to+bid+on+AOL/2100-1038_3-5873485.html http://news.com.com/5208-1038-0.html?forumID=1&threadID=9658&messageID=69942&start=-1 http://networks.silicon.com/webwatch/0,39024667,39152424,00.htm http://www.geek.com/news/geeknews/2005Sep/gee20050921032369.htm
May be, may be not but a company that starts buying a client to save 12% of its income make me wondering. Also AOL merged with Time Warner and AOL is now one of its 5 major segments. I don't see TW selling out AOL after all the cash they lost with it. I can imagine a partnership between Google and AOL as AOL is talking with MSN for that purpose. But I'm not a financial guru
Actually buying AOL would be a very bad move on Googles part. They would be nothing more than a cash drain, much more than if they lost the revenue generated by them right now. This is due to AOL's bad image as of the last few years due to their business practices. Their software is also not state of the art anymore and if anything is very glitchy. I believe the merger of MSN and AOL will happen and that MSN will have its hands full also. The biggest asset that will come out of this will be the still strong brand name that AOL carries, which is worth a large sum if utilized right and the image changed. This could go well for the new owner or bad depending on how they handle the image issue of AOL and its glitchy software.
I would go with Google. It is still a young company. AOL sucks for the most part and Microsoft is already a household name.