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December 16, 2005

Buzz: Google ahead of Microsoft for AOL deal

Posted by David Hunter at 1:19 PM ET.

Sandy Brown at has the latest rumor:

Time Warner entered talks with Google over a partnership with America Online, The Wall Street Journal reported.

Citing people close to the situation, the paper said Time Warner and Google “entered exclusive negotiations about deepening their advertising partnership, shutting out Microsoft.” The Journal said Google will pay $1 billion for a 5% stake in AOL. The paper said any deal “won’t likely be finalized until next week after Time Warner’s board meeting on Wednesday.”

A person familiar with the situation said talks between Microsoft and Time Warner had ended. Time Warner declined to comment, as did Google. Microsoft reps weren’t immediately reachable.

Developments in the AOL sweepstakes have been hard to figure out at times. For instance, Fiday’s news comes just 10 days after the Journal reported that Time Warner was near an agreement with Microsoft to develop an online-advertising service to compete with Google. The Journal noted Friday that Microsoft “has been wooing AOL since January.”

Update (6:30 PM): The above was updated to reflect the updated source. There are widely varied discussions of the rumored terms at the link and at Reuters, AP, CNET, and BetaNews.

Related: Previous episode in this saga.

Filed under AOL, Alliances, Coopetition, Google

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3 Responses to “Buzz: Google ahead of Microsoft for AOL deal”

  1. Microsoft News Tracker » Google AOL deal backstory and backlash Says:

    [...] In today’s New York Times, Saul Hansell and Richard Siklos have the behind-the-scenes story of the impending Google AOL deal revealed yesterday. It’s got Time Warner executives shuttling between separate conference rooms at TW HQ where the Microsoft and Google teams are ensconced and TW CEO Richard Parsons leaving a Christmas party at 9PM Thursday night to shake hands with Google CEO Eric Schmidt to seal the deal. Parsons then called Microsoft CEO Steve Ballmer Friday morning to deliver the bad news. It looks like the deal is done and merely awaiting approval of the TW board on Tuesday. [...]

  2. Microsoft News Tracker » More Google AOL deal reaction Says:

    [...] Today was the first full business day after the news of the Google AOL deal broke and reactions varied. [...]

  3. Microsoft News Tracker » AOL and Google confirm deal Says:

    [...] The deal is done, pretty much as rumored. Google (GOOG:Nasdaq) and Time Warner’s (TWX:NYSE) America Online unit confirmed late Tuesday that they have expanded their current partnership into an agreement that gives Google a 5% stake in AOL for $1 billion. … Under the strategic alliance, Google and AOL will continue providing search technology to AOL’s network of Internet properties worldwide. Plans include: creating an AOL Marketplace through white labeling of Google’s advertising technology, expanding display advertising throughout Google’s network, making AOL content more accessible to Google Web crawlers and a video-search collaboration. [...]

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