Google's goo-goo eyes for AOL

Tech Culture

A long-rumored deal between Google and America Online finally become official Tuesday, with the search behemoth paying $1 billion for a 5 percent stake in AOL.


The deal calls for the companies to expand their current search engine relationship to collaborate on advertising, instant messaging and video. For instance, AOL's premium video service will now be featured within Google Video.

The talks had gone on for some time, with several other companies--most notably Microsoft--rumored to have been interested in an AOL stake.

Bloggers focused on what happens next: AOL and Google will link up instant messaging applications and tie ad technologies more tightly together. And they also asked the question that arises with any big tech news: What does this mean for Microsoft?

Blog community response:

"Just how much losing out on AOL hurts isn't easily calculated; in fact, it's possible Microsoft may have missed at least one other opportunity in the process. The AOL-Google deal includes enabling communication between their instant messangers for Google Talk users who sign up for an AOL screen name, which could keep Microsoft from an AOL interoperability agreement of its own."

"Does Google double down (or more) on AOL to establish itself as a content player to take on Yahoo while giving itself more AdSense-friendly properties. Or does Google have another big trick up its sleeve? This is what makes Google such fascinating fodder strategically."
--Mark Evans

"Google will give AOL better placement in SERPs. Google will get benefits from AOL opening up their AOL IM to work with Google Talk. As AOL is transitioning to their free portal model, they have everything to gain from this relationship. Google traffic will be key here to the future of AOL if they believe that its their free portal/conten model that will be leading the charge for them."
--Clickety Clack

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