| Google Search Engine and Time Warner’s AOL Talk Merger |
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| Written by Administrator | |
| Friday, 16 December 2005 | |
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With talks between Microsoft and Time Warner Inc ended, exclusive
negotiations are now under way between Google Inc. and Time Warner. The
deal would be over $1 billion and include a broader advertising
partnership with America Online, executives close to the talks report.
With
Microsoft out of the picture, a deal between Time Warner and Google is
expected as early as next week. Google would then have a 5 percent
ownership in AOL, reports an insider with knowledge of Time Warner’s
position. Google, the largest Internet search tool, has agreed to highlight AOL’s Internet properties in their sponsored link section, and to integrate AOL video clips in its Google Video service. AOL will in turn continue to use Google’s search engine for its members. The agreement with Google would give AOL more flexibility to sell Google search ads, and have them appear only on AOL sites. The online service currently directs advertisers to Google's Web site with no way to limit display ads to its own customers. Most of the $420 million attributed to AOL’s proceeds with Google come from the ads Google distributes on AOL's Web site. The two companies began working together in 2002 when Google pulled AOL from Yahoo Inc. Microsoft is one of the fiercest competitors with Google, sources said, but their offer did not include monetary compensation. Officials described the negotiations on the condition of anonymity since no agreement has yet been formalized. The deal could be finalized as early as next week, when Time Warner's board meets in New York. By Patricia Fuller |
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