I read the news today and can only shake my head....5% of AOL for a Billion Dollars, so Google thinks AOL is worth 20 Billion Dollars? If all those CD's that Time Warner slipped into our mail boxes were stacked on top of one another they would reach to the Moon, is this going to be Google's space ladder?
Google earned $385 million dollars in clicks from AOL Users in the past year, so how is that worth an investment of a Billion Dollars?
Fron the WSJ: On Sept. 16, Google CEO Eric Schmidt called AOL's Mr. Miller on his cellphone. "I'm in New York," he said. "Can we meet?" They sat down later that day to discuss a deeper partnership, including how AOL could sell ads through the searches that Google provides on AOL properties. Currently, advertisers must buy search ads from Google. AOL wanted to sell them itself, boosting its revenue.
Their conversations continued during the first week of October at the Web 2.0 conference in San Francisco. At the same time, Time Warner and Microsoft restarted their own discussions.
I was at Web 2.0 and so was AOL's Jonathan Miller, MSN's Yusuf Mehdi and the Googler Sergey Brin, lots of talks went on in back rooms; you could smell the money.
I met Dave Girouard, General Manager, Google Enterprise at Interop on Wednsday and I was at Microsoft's NYC office on Thursday, but the action was over on Columbus Circle at the Time Warner Building. Christmas came early at Time Warner this year, they lost money for 11.5 months in 2005, maybe they will be able to write-off the Billion Dollars. LOL
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