Google confirms America Online deal

Google confirms America Online deal

Google has finally confirmed that they have expanded their search and advertising partnership with the Time Warner’s internet division America Online. This deal has been a hot topic of discussion on the internet since sometime now. All the three major search engines Microsoft MSN, Yahoo!, and Google had shown interest in a possible deal but Google emerged the winner out of the three.

Yahoo! had backed out quite some while ago. Microsoft was in the running till a couple of days back. However, AOL decided to continue their relationship with Google and perhaps managed to play the Microsoft card to get a great deal out of the search engine giant. The deal means that Microsoft would lose a great chance to promote their search engine and establish themselves in the online advertisement market.

AOL has confirmed that Google would be investing close to USD 1 Billion to take a 5 percent stake in AOL. The deal between the two parties would also see Google promoting AOL content on their various services. AOL would also be now involved in selling graphical ads to Google’s extensive network of advertisers.

Google needed to keep AOL with them considering they are one of the biggest advertisers and users of Google search engine. As per market estimates, AOL account for more than 10% of Google’s revenues.

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