AOL to Sell 5% of to Google

Rebuffing aggressive overtures from Microsoft, Time Warner has agreed to sell a 5 percent stake in America Online to Google for $1 billion as part of an expanded partnership between AOL, once the dominant company on the Internet, and Google, the current online king.

While the deal terms are largely set, it will not be final until it is ratified by the Time Warner board on Tuesday, according to an executive who was briefed on the negotiations.

The executive said negotiations between the three companies reached a fevered pitch on Thursday night when teams from Google and Microsoft were in separate rooms of the Time Warner Center in Manhattan and executives from the media company walked back and forth between them.

Finally, around 9 p.m., Richard D. Parsons, chief executive of Time Warner told Eric E. Schmidt, chief executive of Google, that he would accept Google’s recently sweetened offer. Google, which prides itself on the purity of its search results, agreed to give favored placement to content from AOL throughout its site, something it has never done before.

The deal helps Google fend off what could have been a significant challenge from a combination of AOL and Microsoft and cements its position as far and away the largest seller of search advertising.

According to the executive, Mr. Parsons called Steven A. Ballmer, Microsoft’s chief executive, this morning to give him the news that the deal that Microsoft had so eagerly sought – and had thought it had won – was going to Google, which it sees as its most potent long-term rival.

Microsoft had proposed that it and AOL form a joint venture to sell advertising on their own sites and eventually on other sites as well. Now Microsoft will compete in the search business as a distant No. 3 behind Yahoo.

Representatives of Time Warner, Google and Microsoft declined to comment.

Facebook Comments

More Stuff

How to Deploy Virtual Machines in RHEV Environment – Part 4 Our environment consist of one datacenter attached with ISCSI shared storage. This datacenter included one cluster with two hosts/nodes which will be ...
How an upstart hacker collective is fighting back against misinfor... As 2018 drew to a close, BuzzFeed analyzed the most-shared fake stories on Facebook and found that the misinformation industry is still thriving. Acco...
3-way Intel i955X motherboard shootout Tarinder from hexus.net compares ABIT AW8-MAX , Gigabyte 8I955X and Intel D955XBKWhich motherboard to buy? Determining the answer to this questi...
The New Space Race: Designing Incentives to Move Us Forward Launch of the SpaceX Falcon Heavy, Feb. 6, 2018 (Joe Burbank/Orlando Sentinel via AP)Space exploration plays a special role in our hearts and minds...
Spread the love

Posted by News Monkey