Google and AOL closing in on a deal

Google and AOL closing in on a deal

Google and Time Warner are closing in on a deal, which would see Microsoft being totally knocked off from the venture with America Online. As per incoming reports, the executives from these two companies spent the weekend ironing out the small details of this possible deal, which would see Google paying close to around USD 1 Billion for a 5% stake in the America Online.

The deal would also ensure that AOL would continue to use Google Search Engine services along with their online contextual based advertisement system. This agreement is now expected to go to the Time Warner board tomorrow. AOL is also said to have informed the software giant Microsoft that they are now exclusively talking with Google.

Microsoft had shown interest in collaborating with the internet division of Time Warner with aim to replace Google search engine service with their own MSN Search Engine. This would have resulted in quite a big setback to Google considering AOL brings around 10% of their revenues with their online channels.

AOL in turn would get a chance to impress the market with the deal placing the total value of the company at an impressive USD 20 billion. However, market experts believe that the company is not worth as much considering its losing customers to rival ISP services at a fast rate. AOL on their part is now interested in increasing their revenues through online advertisements.

The deal would also see Google promoting AOL content on their services like search result pages and video search engines.

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