Lowter

Google Goes Shopping

Published on the 22nd of December 2005

By Ethan Poole

After the huge hype of every person and their mother looking toward buying a stake in AOL, a transaction has finally taken place. Google has purchased a 5% stake in AOL for $1 billion, securing its profit stream from Google ads featured in AOL. Google's profit from AOL makes up 10% of its overall profit. Previously there were rumors of AOL planning to switch over to Microsoft, but was stopped in its tracks with gracious gifts from Google.

According to Google, AOL will have a preferred placement in its search engine. At the time this is mainly in the video search, but analysts fear that it will spread and could potentially damage Google's perfected algorithm.

AOL will also have the ability to display its ads on Google and through the Google AdSense program. Google has also given AOL a $300 million advertising credit to purchase search-related ads through Google AdWords.

Analysts wonder if this deal will be a disaster or put Google a step closer to world domination. Only time will tell!

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