Friday, December 16, 2005

Google Buys 5% of AOL

This is a blog test to see how wide a blog page is. So Google is buying 5% of AOL for $1 B. Some people are rushing off to figure out if this was a good price to pay by looking at AOL's value, etc. That's missing the point. The purchase of part of AOL was part of the overall partnership to secure AOL as a search customer. Microsoft was battling fiercly for the AOL search business. 10% of the search business rested on who won AOL's business. That's the real story. $1 B is reasonable to pay to maintain this share of the search market. By the way, Google's

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