Google Acquires 5% of AOL 404
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.'"
Interesting (Score:5, Interesting)
This could get interesting. (fp?)
Re:Interesting (Score:5, Insightful)
Re:Interesting (Score:3, Funny)
I can keep dreaming...
GOOG (Score:5, Interesting)
Re:Interesting (Score:5, Insightful)
I stopped using AOL/ICQ a long time ago. It used to be popular, but AOL did a terrible job of maintaining that service. AOL's program and its assorted popups and ads were the predecessors of modern spyware and that has tainted AOL in the public's eye for the while. I think they should keep the customer base, but any future software endeavors headed by google should not include the AOL name.
AOL Google. Somehow sounds like Microsoft Linux. It doesnt fit.
Re:Interesting (Score:2, Interesting)
1. Google pays AOL $1 billion
2. AOL pays a tiny percentage of it's profits to Google
3. Google gets a say (a 5% say?) in AOL's policies etc
So how could this possibly hurt Google? It's not like this is a merger...
Re:Interesting (Score:5, Informative)
http://news.com.com/Google%2C+Time+Warner+strike+
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.
Re:Interesting (Score:4, Insightful)
Google has a winning formula so I hope they don't let AOL corrupt them and ruin them.
Re:Interesting (Score:3, Informative)
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
Re:Interesting (Score:2, Funny)
Mebbe they will hire justin frankel back... and then mebbe he would release a new p2p network, thats a BT killer... and gives a new life to file sharing. Even now no other media player has been able to give a visualization plugin as awesome as avs... its really unfortunate no more major development is being done on it. The king is dead, long live the king.
Did it help Daimler-Benz to acquire Chysler? (Score:5, Insightful)
When a good company buys a bad company, the result is usually mediocrity. It's can be much harder to fix a crap company than to start fresh and build it right.
However, that isn't what's happening here. Google is only buying 5% AOL, and they already have a business relationship. Google crunched the numbers and determined that one Billion dollars was the right price to pay for renewing their lucrative contracts with AOL, establishing some new contracts, and disrupting Microsoft's plans.
Re:Interesting (Score:5, Interesting)
Say what you want about AOL, but its the only software my 70-year old mother-in-law can operate. She still doesn't understand the concept of mouse-dragging and double-clicking an icon is a stretch for her.
Yet she is an e-mail queen with AOL!
Re:Interesting (Score:3, Insightful)
I sometimes need to be able to select an item, or items, and doing that with single click is annyoying. You can get a system where the focus is given to the item that the mouse hovers over but that's slow to operate. Give me single click to select, double click to operate, anyday.
Re:Interesting (Score:3, Interesting)
I'm not sure they have a reputation of being a "bad ISP" - they have a reputation of having a very large clueless userbase, which is not the same thing (if anything it might demonstrate their software is easier for clueless people to understand).
Admittedly they've made some fundamentally stupid decisions which has probably driven away a proportion of clueful users whilest making cl
Re:Interesting (Score:3, Funny)
G to the N to the A to the A (Score:5, Interesting)
This reminds me of the transition a couple of decades ago from multiple distinct email networks (Compuserve, AOL, BITNET, etc) to the one unified email system we have now. Hopefully in a few years it won't matter what IM network we are on to be able to communicate. And ideally, one's email address and IM address would be identical.
Re:G to the N to the A to the A (Score:2, Insightful)
Re:G to the N to the A to the A (Score:2, Insightful)
the fact that we are having this discussion plays into the troller's plans but I'd rather inform someone than worry about being trolled
Re:G to the N to the A to the A (Score:5, Funny)
Universal User Identifier (Score:3, Interesting)
EMail addresses and IM addresses will never be identical without some layer of abstraction, because both expose some of the mechanics of how the messages are routed. In order for my Jabber ID to be the same as my email address, I must either manage my own domain -- which isn't an option for most people at this point -- or use the same provider for my email and my Jabber services. A user can choose to set things up this way for his own email address and Jabber ID, but no-one will ever be able to make the ass
In other news... (Score:5, Funny)
Re:In other news... (Score:5, Funny)
Seems to me Google is slowly getting rid of AOL... for the benefit of society.
They are doing no evil, hell, they're doing the world a huge service.
Re:In other news... (Score:2)
It fits their knee-jerk emotionalism (Score:2, Interesting)
Re:In other news... (Score:2)
More along the lines of billing fraud (or would be, if there was such a thing anymore as a law meant to protect people instead of business interests).
Honestly, how many other companies out there have a reputation approaching "If you want to unsubscribe, your best bet is to cancel the credit card."
Re:In other news... (Score:5, Funny)
Wow... (Score:2)
I'm not even sure what to think about this.... it's going to take some time.
The beginning of the end? Or do I trust Google enough that this isn't a sign of the Apocalypse...
Of course now... (Score:5, Funny)
Re:Of course now... (Score:5, Funny)
Re:Of course now... (Score:2)
ah well... (Score:4, Insightful)
Both entities are going to have to meet in the middle, as far as on screen visuals. Which can only be bad for the Google we all know and love.
Re:ah well... (Score:2)
It'll probably take the form of an open, peer-to-peer app that caches different parts of the net on different users machines. Hard disk space is cheap, so is bandwidth. So is idle cpu time (HP can't sell it for a buck an hour!)
And its Yodda-ish motto : "Do!. No evil!"
Re:ah well... (Score:5, Funny)
Dude, that's the Captain Kirk. Version.
The. Correct way. Is.
"No Evil, Do!"
I recall reading this not too long ago... (Score:3, Informative)
I have to say, I'm a little worried... (Score:4, Interesting)
Re:I have to say, I'm a little worried... (Score:2, Interesting)
Just as predicted, Google's going down the same sewage hole as every portal before it.
Re:I have to say, I'm a little worried... (Score:5, Insightful)
The naivety around here is mind-blowingly astounding.
Google's original, super-clean, no-ad interface was a differentiation to get them attention and eyeballs. Sure enough it worked wonders, and all of the techies and geeks (and overlaps between them) were raving about this great new search engine, encouraging all of their friends and family to use it as well (a no-pay sales force). Soon enough they started introducing those differentiated text-ads (which had a good click through rate because they were novel), and the rest is history.
All of that was in pursuit of the almighty buck. The fact that someone could say that the company is now doing something in pursuit of the almighty buck, while this young company sits with a valuation of $127 billion dollars, is astounding.
Re:I have to say, I'm a little worried... (Score:5, Insightful)
AOL hasnt been doing too well recently, but Google has been. Everyone can see whose philosophy works, and whose philosophy brings in the almighty buck.
We know this is good news for google, just not how good of a news is it?
Google bought a browser, and is now buying a major customer base. Theyve bought lots of dark fiber. Theyre in effect buying everything that surrounds a person, everything that a person uses to access the outside world. They wont risk losing such potential by making or using crappy software all of a sudden. If they allow people to use Linux, and one day remove ALL references to Microsoft on the Internet (the way Microsoft once tried for Linux websites), imagine the fallout. Google may be far more evil than AOL and Microsoft combined.
Re:I have to say, I'm a little worried... (Score:4, Funny)
I shall, however, wait until there is concrete evidence of such a change in approach before assuming it will occur.
Re:I have to say, I'm a little worried... (Score:3, Insightful)
Re:I have to say, I'm a little worried... (Score:5, Insightful)
Why do people assume that this is true of publicly held companies, but not true of pre-public companies working off of venture capital and private investment (even, Mom's cash)? When someone gives you a more modest pile of cash to help grow (or prevent the early demise of) a start-up company, you are already working to make that investment worth it (unless you want to lose your investors). Whether you're dealing with friends and family investing, or public shareholders, you'd better be doing your best to honor those investors' faith in you.
Re:I have to say, I'm a little worried... (Score:4, Insightful)
Your results may vary.
Re:I have to say, I'm a little worried... (Score:5, Insightful)
Actually they structured their IPO such that this influence would be smaller than normal. I recall all the blowhards on the 24-hour news stations' business news shows telling everyone not to buy the Google IPO for long-term gain because of this. If I recall correctly, there are two types of stock shares: those owned by various people in Google, which get 10 votes per share; and those owned by the public, which get 1 vote per share.
Yes, obviously they want their stock price to go up. But they aren't nearly as accountable to shareholders as most public companies.
Re:I have to say, I'm a little worried... (Score:3, Insightful)
I have to say, I don't see how "buy into related company and make their products interoperable" is either against their old principles or evil. Isn't IM interoperability a good thing? They didn't buy into other companies pre-IPO because they didn't have bundles of cash to throw around, not because it was evil.
So I guess Google owns 10% now? (Score:5, Funny)
Re:So I guess Google owns 10% now? (Score:3, Funny)
Re:So I guess Google owns 10% now? (Score:5, Informative)
wait a minute... (Score:3, Funny)
Re:wait a minute... (Score:2)
The plan (Score:3, Funny)
2. ???
3. Profit!
Google is supposed to be smart, after all.
Re:The plan (Score:2)
2. Distribute millions of CDs containing the Intarweb to households worldwide
Re:The plan (Score:2)
Well yeah. At this point they've got step 3 down cold.
Re:The plan (Score:3, Insightful)
In other news... (Score:4, Funny)
Temperature in hell drops below 32 F.
Jabber? (Score:5, Interesting)
Re:Jabber? (Score:3, Interesting)
Anyhow, the feature is this: The Jabber protocol is the single best th
Something doesn't smell right about this (Score:3, Interesting)
Also, Google and all their tools and toys seem to be something that is more smart people (lets say the top 50% of technology users) while AOL tended to be something for the dumber folks (lets call them the bottom 50%).
Actually, now that I think about it in that context, makes perfect sense...
Re:Something doesn't smell right about this (Score:5, Funny)
Yeah, you are confused, because there are no "semi-bad guys" in a world of black and white.
Re:Something doesn't smell right about this (Score:5, Insightful)
I imagine there'll be some head shaking after my post. That's cool. I just think that within a year or so, there'll be colorful posts about how to live without Google. "I don't use GMail, I use some other new mail app because it supports color in the subjects. (Score:5, Interesting)"
Just so it's clear, it's not my intention to be insulting or 'right'. Mainly, this is curiosity. I'm posting this, then I'm going to bookmark it. In a year or so, I'll check back on it and see if I nailed it, or if I was once again talking out of my booty.
Re:Something doesn't smell right about this (Score:3, Interesting)
That said,
Re:Something doesn't smell right about this (Score:2)
I know, you'll have to change your entire pigeon-hole worldview!
Re:Something doesn't smell right about this (Score:3, Informative)
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
It's all in the name... (Score:5, Funny)
Re:It's all in the name... (Score:2, Informative)
Re:It's all in the name... (Score:5, Funny)
If I had included this link [reference.com] to begin with, the joke (regardless of how funny it might actually be deemed to be) would have worked without requiring an explanation...
Oh. Wait a minute. I did.
Re:It's all in the name... (Score:2)
You are correct though.
Maybe someday... (Score:5, Interesting)
Google jumped the shark! (Score:2)
I wonder who's gonna occupy the SGI buildings next.
Adding 2 and 2... (Score:5, Insightful)
2. Google builds instant datacenters in shipping containers
3. Google buys stake in dying dialup ISP with millions of users
4. ??? (Do I really need to spell it out?)
5. Profit. A whole lot of it.
Somewhere in Redmond (Score:5, Funny)
Re:Somewhere in Redmond (Score:2)
~$ cd
Yeah, it's an old edit. The new one is neither valid nor on topic.
nooo! (Score:2)
Well, so long... (Score:2)
You can't have an omelette and keep the eggs.
You can't have the wolf fed and the sheep alive.
You.. well you get me.
I wonder if Google is 5% evil now, will AOL become 5% not evil.
Re:Well, so long... (Score:2)
Google could have bought 4.9% on the sly and not announced anything.
What was this, pigheadedness? (Score:2, Interesting)
Now, just because MS wanted it, Google got it first.
Sometimes businesses are silly as they can possibly get. Remember the rush of everyone providing 1GB or better storage in their mail boxes in responce to Gmail? As if we all just die for a GB of storage we won't use cuz Google 'invented' it.
Now Google has fallen pray to the same game. I hope they play their cards well. But really I think instead of
Graphical Ads (Score:2, Offtopic)
Google's Graphical ADs [nytimes.com]
NO!! (Score:5, Funny)
Google shipping a googol CDs? (Score:5, Funny)
Re:Google shipping a googol CDs? (Score:4, Funny)
"Do no evil" my ass. At least email spam I can just delete. Those CDs are landfill.
I gotta say (Score:2, Interesting)
It's an old story ... (Score:5, Interesting)
"Carry me across," begged the scorpion, "and I promise not to sting you."
The dog was wise and slow to reply. "I don't think so," he growled. "I've never met a trustworthy scorpion."
"Today you have," hissed the scorpion with as much of a smile as he could manage. "I'm not evil, like other creatures of my kind. Besides, if I stung you, I'd drown. Carry me across and I promise all will be well."
The dog relented, taking the scorpion on his back. He paddled out into the current. Halfway across, the scorpion stung him behind the neck.
"Now we will both surely die!" the dog moaned as the venom began to take hold. "Why have you done this?"
"Because I am a scorpion, of course."
Re:It's an old story ... (Score:2)
http://hoopsu.homestead.com/motivfrogscorpion.htm
That sound you just heard.... (Score:2, Redundant)
It's all about the AIM (Score:5, Interesting)
Google had to sacrifice quite a lot to snag this deal but if you take over instant messaging, you can take over voip, hence, you can take over telecommunications when cell "phones" can simply operate via wi-fi. I say, good move Google - I love you baby.
Meanwhile (Score:3, Interesting)
Re:Meanwhile (Score:4, Interesting)
No shit and here's why:
This wouldn't be the same Goldman Sachs locked out by Google during its IPO, wouldn't it? Nothing to see here, just a couple of vested interests having a whine.
Slashdot... (Score:2)
Google preparing to take on Microsoft? (Score:2)
If they hurt Microsoft's platform strategy, that means more sales for both AOL and Google.
I could be wrong about this, and probably am, but this is one possible explanation.
Otherwise, Google's just gone and alienated some of their geeky users in exchange for some short term profit and tr
Surprised they don't see what they are doing... (Score:3, Interesting)
I would be willing to wager that this has serious implications to their bottom line.
The air in here is getting pretty brown, and with that, we will see a new google come in and take some market share. There was a reason we all started using google after the likes of infoseek and other good search engines back in the day went south due to poor management vision, index spamming and advertising revenue crater. They are not learning from the mistakes of their predecessors. My recommendation to Larry and Sergey: Sell some stock now.
A Funny Feeling (Score:5, Funny)
My friend once told me about this time when he made out with a girl who he later found out was his cousin. He tried to explain the feeling to me. He said that his enjoyment made the post-revelation remorse much worse. But I didn't understand.
Jon -- if you're out there -- I get it now.
Re:A Funny Feeling (Score:4, Funny)
Take of your /. "I hate AOL" hat for a moment... (Score:5, Insightful)
One of Google's issues right now is diversification of revenue streams. Most of their revenue comes from search and ads. They need to find more revenue from different areas, so what if they decided to provide the backend search and advertising infrastructure to AOL? AOL still provides the same interface and experience to it's users while Google still gets to have it's same interface that the general
What if google provided AOL with the ability to provide customized Ads to AOL users instead of AOL having to perform the work? It's called outsourcing, execute what you are good at and outsource the rest to people that are better at those tasks. If Google is good at displaying the correct ads, then it's in AOL's best interest to leverage this ability. AOL pays for this service and then Google has one more revenue stream.
Doesn't AOL = Time Warner? (Score:3, Interesting)
what? (Score:3, Interesting)
I wonder what it takes to get two to agree on anti-spam or anti-phish techniques...
Tom
Wait wait wait, HOLD IT!!!!! (Score:3, Insightful)
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.
Leverages technologies? Wealth of new content? WTF?
Methinks Saruman's been looking into the palantir.
Stop worrying (Score:3, Informative)
New slogan (Score:5, Funny)
Re:Link to Google's announcement? (Score:2)
http://googlepress.blogspot.com/ [blogspot.com]
not on the company blog either (yet)
http://googleblog.blogspot.com/ [blogspot.com]
???
http://www.google.com/press/ [google.com]
Re:From the beginning... (Score:5, Insightful)
If they dominate the Internet that essentially trumps anything MS Windows can do. Microsoft has the Windows desktop. Google wants to be the Internet's home page. Which is more powerful? Which is more evil?
I'm a bit worried because if the Internet is taken over by an advertizing company you can kiss your privacy out the door! They'll collect every bit of info about you and your habits and connect the dots like not even the NSA could do.
Re:Hello Google iChat (Score:3, Informative)
I've had several chats with my friend this way, with me using iChat and him using Google Talk.