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Two companies people love to hate

By maxwell edison ·
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One: AOL (America On-Line)

Two: Microsoft

Google, a company people love to love, just entered into a ONE BILLION dollar deal with AOL, shunning Microsoft's advances.

Was this a lose-lose for Google? Should they have stayed independent?

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Good deal for Google

by M_a_r_k In reply to Two companies people love ...

Under the agreement, Google will remain the search engine on the AOL service for five years and Google will give AOL millions of dollars of free advertising on the search engine to promote its network of Web sites. AOL also will get the exclusive right to sell online banner ads for Google. AOL will keep about 20 percent of the proceeds from those ad sales, while Google will get about 80 percent. With more than 110 million unique visitors monthly to its network of Web sites, AOL has been the largest source of ad revenue for Google. AOL has provided Google with more than $400 million in ad revenue so far this year, according to public filings. source: http://www.washingtonpost.com/wp-dyn/content/article/2005/12/16/AR2005121601892.html

They've already had a partnership. AOL provides 10% of Google's ad revenue. Losing that in one big chunk might have sent Google's sky-high stock price tumbling like a tsunami. Spending a measly $1B for five years of $400M+ ad revenue looks like a steal and those ad revenues are likely to increase 5-10% per year. It was either Google or Microsoft getting those 400 million. Sometimes a good financial deal simply means keeping your competion down, even if you aren't materially improved. In this case, Google prevented Microsoft's MSN search engine from gaining market share through AOL. Google also gets 5% stake in AOL, though that's probably not such a good thing.

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small correction ...

by stargazerr In reply to Two companies people love ...

Its

#1 Microsoft

#2 AOL :^O

As for whether Google needed to win this deal ... YES, they did ...

"AOL is Google's biggest customer, accounting for about $420 million, or about 10 percent, of Google's revenue during the first nine months of this year, according to regulatory filings. Losing the deal would have represented a **** to both the company's revenue and its image as the search market leader."

http://www.businessweek.com/ap/financialnews/D8EK8N980.htm?campaign_id=apn_home_down&chan=db

]:)

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Hating companies?

by amcol In reply to Two companies people love ...

I don't understand this as a concept. How, and why, does one hate a company?

Companies are composed of people. If you hate the company do you not also by definition hate the people in it? Do you know any of those people that you should be hating them?

Let's say you disagree with management's direction and that causes you to "hate the company". Management changes, and the direction changes as well. Does this change your attitude about the company? Don't most people stubbornly cling to their original "feelings" about companies, no matter what? Is that entirely rational?

Personally, I have no emotional feeling about any company. I love the fact that I've made a lot of money investing in both AOL and Microsoft, and I really don't care too much about their strategic directions or product qualities or political leanings or anything else. If I don't like what they're doing as a corporate entity I vote with my pocketbook, both of them...my personal one and my business purchasing.

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I love AOL.

by CharlieSpencer In reply to Two companies people love ...

They provide me with dozens of free CD's every year. Over 150 different ones decorate our server room wall.

An AOL e-mail address makes it easy for me to identify a business that hasn't got a clue.

They siphon off all the kids, making it easier for me to get a connection with my ISP.

Heck, I actually like a couple of Microsoft's products, and only mildly dislike most.

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OOH OOH I GOT ONE!

by Oz_Media In reply to Two companies people love ...

WALMART!!

'nuff said about those pr*cks already I think.

As for Google, it's just a search engine to me, I don't use it much at all and don't see any benefit over other engines. NOTE: I am also in Canada and prefer localized searches, which even Excite seems to have a better grip on over Google.

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I love Wal-mart

by CharlieSpencer In reply to OOH OOH I GOT ONE!

They're a good source for the latest AOL CD's...

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