AOL deal - Google or Microsoft?
Posted by Ashish on October 16th, 2005
First it was Microsoft who was pushing to buy stakes in AOL and then it was immediately followed by Google / Comcast alliance. It was pretty evident that Google needed to cut into Microsoft and AOL talks because a successful deal between AOL and Microsoft will mean a significant cut in the ad revenues of Google.
From Bernard’s post:
Google Inc. and Comcast Corp. are in serious discussions with Time Warner Inc. about buying a minority stake in America Online for as much as $5 billion, according to people familiar with the situation.
The negotiations focus primarily on AOL’s network of Web sites, such as the AOL.com Web portal and AOL Instant Messenger, rather than its slowly declining telephone dial-up Internet business. AOL is the Internet’s second-biggest network of sites, with 112 million U.S. visitors in September, trailing Yahoo Inc.’s 123 million, according to comScore Media Metrix.
Google and Comcast are hoping a stake in AOL will allow them to tap AOL’s large audience and its content offerings, such as concerts, drawing more consumers and advertising to their Internet services.
The question is: who will AOL go with? Or is it just that Google is trying to increase the bid price of Microsoft?
November 7th, 2005 at 8:10 pm
I think Google is just trying to put pressure on Microsoft … I really think that is thier business strategy . These guys in google are never silent and always want stir up the computer society .. The made a big sensation by announcing in Google’s Italian Blog about Google OS ( Increase the Pressure on Vista ).. This has been thier strategy .. I am a die hard fan of MS ..but i must tell you google’s strategy is paying of .. These search masters are teaming up with whomever they can to beat Microsoft