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Google Acquires 5% of AOL 404

Posted by ScuttleMonkey
from the googleverse dept.
Heembo writes "CNN is reporting that Google just acquired a 5% stake in AOL for $1 Billion, shutting Microsoft out of the deal." Under this new agreement, among many other things, Google Talk will now interface with AOL's instant messenger according to the announcement on Google's site. From the announcement: "Google Chief Executive Officer Eric Schmidt said: 'AOL is one of Google's longest-standing partners, and we are thrilled to strengthen and expand our relationship. Today's agreement leverages technologies from both companies to connect Google users worldwide to a wealth of new content.'"
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Google Acquires 5% of AOL

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  • by kadathseeker (937789) on Tuesday December 20, 2005 @10:32PM (#14305733) Homepage
    Not a dupe, it comnfirms the speculation in http://slashdot.org/article.pl?sid=05/12/16/204231 &tid=217&tid=120 [slashdot.org]
  • Gimme a 'D'! (Score:0, Informative)

    by Anonymous Coward on Tuesday December 20, 2005 @10:33PM (#14305743)
    Gimme a 'U'!
    Gimme a 'P'!
    Gimme a 'E'!

    What does it spell? DUPE! [slashdot.org]
  • by log2.0 (674840) on Tuesday December 20, 2005 @10:48PM (#14305855)
    To our US readers, gaol is the old spelling of jail...
  • Re:Interesting (Score:5, Informative)

    by Stonehand (71085) on Tuesday December 20, 2005 @11:09PM (#14305998) Homepage
    Reading

    http://news.com.com/Google%2C+Time+Warner+strike+1 +billion+deal+for+AOL/2100-1025_3-6003187.html?tag =nefd.lede [com.com]

    AOL gets --
    * $1B investment. Not gift, but investment.
    * $300M credit for purchase of keyword ads.
    * Ability to sell ads across Google's network including third-party sites (!).
    * Assistance in opening up the 'walled garden' content to Google's crawler.
    * Collaboration on video search.

    Google --
    * Minority shareholder rights.
    * Possibly, more ads sold by AOL's marketing machine.
    * Possibly, higher CTR if AOL can do better ad sales -- through knowing more about its users, say (inferred).
    * Greater availability of the old 'walled garden' content.
    * Collaboration in online video search, which probably includes working with AOL's 'SingingFish' service, and perhaps access to content?
    * Interoperability to an IM network with a huge base -- slightly larger than MSN + Yahoo!, last I checked.

    There's also a defensive factor; a deal with MSN might have required shifting from Google to MSN, and that would mean some 25-30M search queries per day and ~10% of Google's advertising revenue.

    As to how Google might lose, well, if AOL were to collapse, the $1B investment might look like a bad idea; or if the changes drove away too many paying users (through ad clicks, not subscribers). Likewise, AOL might be considered to have lost if Microsoft would have been a better partner, or if people flee AIM to Google Talk, or so forth. But it's an interesting deal from both perspectives, I'd say.
  • by Anonymous Coward on Tuesday December 20, 2005 @11:11PM (#14306009)
    Good guys? Apple and Nintendo are both sue-happy. Christ, in the era of the NES Nintendo was about as close to a video game Satan as you could get. It just happens that the console market is devoid of 'good guys.' Microsoft, Sony, and Nintendo are all evil.
  • by Anonymous Coward on Tuesday December 20, 2005 @11:20PM (#14306075)
    masterful. simply masterful.

    I bow to your massive trolling skills
  • by Geoffreyerffoeg (729040) on Tuesday December 20, 2005 @11:40PM (#14306192)
    Did the Animaniacs become bad guys when AOL bought Time Warner? A corporation is not homogeneous. Blame AOL the ISP for their poor ISP standards, but that's not all they own. At the least, Time Warner controls a lot of media (probably more than Murdoch).

    AOL's instant messenger can be very valuable for Google. In the US, at least, it's the de facto standard for many general public social groups because of network effects. Google Talk is not going to succeed until they join it with some major network. (iChat performed well because Apple licensed AOL's protocols and access to the server instead of saying, "oo, we have Mac.com, let's invent our own messenger!".)

    The next thing they have (or had) is Netscape. There have been rumors of a Google Browser for some time now, and Google's been working pretty closely with Firefox (they even supply a custom home page for that browser only). It's very possible that Google could un-spin-off the Mozilla Foundation and take it under Google, Inc.'s ownership.

    What else does AOL have? AOL/AIM/Netscape webmail (of course Gmail is better but perhaps there's some useful feature in those); Netscape's web page composer (Google owns Blogger, and might launch a web hosting service); voice and video chat; Winamp; ICQ; Mapquest; Popular Science; Engadget....

    In other words, AOL is a very large conglomerate. It's okay to say that America Online is a "bad guy" if you recognize that AOL Time Warner consists of a lot more.
  • by danielk1982 (868580) on Tuesday December 20, 2005 @11:45PM (#14306219)
    Oh yeah.

    The standard definition is 'evil = big'. You get too successful people will hate you.

    The big appeal of Nintendo and Apple is that they are underdogs. The more they get kicked around the better. Truth is both are some of the most arrogant companies out there (iTMS locking out 3rd party mp3 players for example). Thank God neither is in a market leadership position (desktops/consoles).
  • Re:Meanwhile (Score:2, Informative)

    by BarneyRabble (866644) <{rwalcheske} {at} {sbcglobal.net}> on Tuesday December 20, 2005 @11:46PM (#14306227)
    Carl Icahn is a also a limited minority shareholder of TimeWarner. He's been pushing for TW to get rid of its cable division for months and has been shrugged off by them. He's just another greedy money maker who can't stand any little giant companies acquiring stakes in a company that he can't have a say in. As for Google, good for them. Maybe they can get the L33t hax0rs out of there to stop saying "ME TOO!" or some other crap like that.
  • by Heembo (916647) on Tuesday December 20, 2005 @11:59PM (#14306290) Journal
    This is NOT a dupe. The previous article was "speculation" and the second was "confirmation". In other words, it is no longer a rumor, it is reality. This is newsworthy and I'm honored that the slashdot staff agreed with my submission.
  • by mh101 (620659) on Wednesday December 21, 2005 @12:45AM (#14306510)
    It already does, and has for a while. Official instructions from Google are located here [google.com].

    I've had several chats with my friend this way, with me using iChat and him using Google Talk.
  • by aconkling (916504) on Wednesday December 21, 2005 @01:51AM (#14306777) Homepage
    Took me a little while to find it, but here's the press release from Google:
    http://www.google.com/press/pressrel/twaol_expande d.html [google.com]

    Would've been nice to have that linked in the summary, or at least in the CNN article. Or maybe it's just too late and I failed to see it.... O_o
  • Re:Interesting (Score:3, Informative)

    by Ucklak (755284) on Wednesday December 21, 2005 @11:00AM (#14308909)
    AOL's policy now is to just have the SPF record and a reverse DNS. I run a mail server from my house (perfectly legitimate) and I have mail/web servers in 2 major cities. I control my DNS so as soon as I published the SPF records, AOL/Compuserve/Netscape started to receive mail from my servers.
    I have web customers with compuserve email addresses where mail was getting bounced from their website form (they didn't want another email address from their domain to worry about) as well as a spouse with friends that have AOL addresses. Once I got the SPF record, it flowed.
  • Stop worrying (Score:3, Informative)

    by fbg111 (529550) on Wednesday December 21, 2005 @11:10AM (#14308989)
    From an outsider's point of view, it seems the reason for this deal is that AOL will keep Google search engine and Ad programs, the latter of which make up about 12% of Google's revenues. Google did this to protect their revenue and by extension, stock price. AOL gets a lot of money, and perhaps the cachet of a closer partnership with Google. As a side benefit, Google also gets to tie Google Talk in with AIM. It was an unfortunate necessity for Google, but that's business. Maybe they'll eventually persuade AOL to dump IE and go back to a Gecko-based browser...

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