Time Warner talking with Google over America Online
Sources have revealed that Time Warner has ended their talks with the software giants Microsoft and are now discussing a potential deal with Google over their media outlet America Online. Google is said to be interested in a $1 billion investment and a broader advertising partnership with America Online.
Now that Microsoft seems to be out of talks with Time Warner, we might see a collaborated deal between two of the powerhouses of the web, AOL and Google. The deal is expected to be announced by next week and might see Google take a 5 percent stake in AOL. The offer puts a USD 20 Billion price tag on the America Online unit of Time Warner.
It is also reported that Google has also agreed to highlight AOL’s Web properties as sponsored links and integrate AOL’s video clips in its fledgling Google Video service. AOL in return would continue to use Google technology for their search engine and run their online advertisement modules. However, all these are the talks in the media over the potential deal and nothing has been finalized or confirmed by either of the two parties.
However, the deal goes onto show how Time Warner is milking Google by using Microsoft as bait considering Google cannot afford to see AOL dealing with MSN for their online services. AOL is reported to account for around 10% of all Google revenues from their online advertisement program. This is something Google cannot afford to lose.