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The Unofficial Google Weblog
Google Saves Its Ass, Spanks Microsoft's, and Kisses AOL's

No official confirmations have emanated from AOL or Google, but word is everywhere that Google has secured its date to the prom with AOL. Or maybe it’s an engagement. with 5 percent of AOL transferring into Google’s balance sheet I wouldn’t call it a marriage, the the preexisting partnership has definitely been strengthened at Microsoft’s expense. The triangulated courtship in which Google and Microsoft each wooed AOL (has AOL felt this powerful, this beautiful, this wanted in years?) was a golden opportunity for Microsoft to establishe itself as a dominant force in online advertising, breaking up the imminently expiring, long-standing licensing arrangement between AOL and Google.

Naturally, Google was (it might be speculated) frantic and determined to derail that outcome. Mission accomplished. By all accounts, in cluding a very certain-sounding report from Forbes, Google will fork over $1B to acquire its minority stake, and engage in various unspecified cross-promotional deals and ad-revenue adjustments. the $1B represents about three years of the revenue Google currently earns from AOL in licensing fees. Not a bad price to pay to keep the status quo.

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