Google/AOL deal done

CNN/Reuters is reporting that the much talked about $1B deal is now a reality and the contracts are inked.

The most talked about part of the deal–that AOL has talked Google into using graphical ads on their otherwise pristine search results pages is discussed in the CNN article as “[allowing] AOL to sell graphical ads to Google’s fast-growing ad network.” Google’s ad network, of course, is AdSense not AdWords. Either the NYTimes got it wrong when they claimed that AOL wanted Google to show ads on Google’s SERPs or CNN doesn’t know what the ad network really is. Hopefully, clarification of this will be forthcoming.

Either way, Google just achieved a major coup. As was pointed out a little while back, AOL has been pivotal in several wins over the last year. Though they’re never the main reason for anyone to do anything, AOL often serves as the tipping point that makes a deal just that much better. AOL’s walled garden and loyal user base bring incredible traffic. Furthermore, part of the agreement deals with how AOL will be working to make their internal pages more accessible to Google’s spider, increasing Google’s already impressive index even more in a way that the other search engines can’t compete with.

Some aren’t so sanguine however. Investor Carl Icahn rated the deal “disastrous” because the deal could undermine a merger later on for the two companies. Mr. Icahn’s group holds a 3.1 percent stake in Time Warner, the parent company of AOL.

Related posts:

1. Google/ YouTube Deal Closes as The Face of YouTube Evolves
2. Ask/ Lycos Deal Is No Laughing Matter
3. Microsoft gives Google something to cry about
4. Hey Google, can you hear them now?
5. Google and YouTube: What is going on?

About the Author

Susan Esparza is the Senior Editor at Bruce Clay, Inc. She joined the company in November 2004 and has written extensively for clients and internal publications. Search Engine Optimization All-in-One Desk Reference For Dummies by Bruce Clay and Susan Esparza, is available now. She also knows where the knives and forks go in a buffet line. The latter makes her invaluable to Bruce Clay, Inc.