In the current competition from AOL, MSN, looks can be the winner over Google. So what does it mean for the three companies?
AOL on the block?
As you know, Time Warner's AOL unit has stirred in the last year trying to find a way to remain relevant. The problem for AOL, of course, is the steady decline in use dial-up modems as a method to access the Internet. Depending on the study you look act, the dial-up modem access now accounts for about 40 percent of all Internet users. This number is steadily dropping as DSL and cable systems, Internet access to most popular. The result of the struggles at AOL are having an interesting impact on the search wars.
Google and MSN are trying to position themselves to dominate online search. The situation is summarized as follows: Google is king, MSN wants it. This effect leads to particularly interesting when you consider that Google now provides listings and search results to AOL. In this way, Google gets about 10 percent of its revenue from AOL's relationship.
In the summer of 2005, rumors began that AOL was for sale. MSN and Google were the obvious buyers. The only problem was that both companies realized AOL was a good short term play, but a terrible long-term because of the death of the systems dial-up modem. So who would buy AOL and they would be willing to pay? Google MSN would let go 10 percent of your business? If so, how high can Google up the price of AOL and MSN?
Google makes big mistake
If the rumors are true, MSN and Time Warner have agreed on the AOL platform. So, how MSN pay AOL Time Warner?
Nothing. Not one penny.
In late December 2005, MSN and Time Warner is expected to announce a partnership in which the two companies linking their Internet units and carry out joint advertising. For its part, Google will start all ads from AOL, which is replaced by MSN or some combination of AOL, MSN search results and advertisements.
Google executives are making a big mistake, a critical error. Google will lose 10 percent of their business to MSN MSN without being required to spend all the resources for the business. Google's AdWords program, the main source of revenue for Google, and not on AOL. No doubt, Google may have reached more attractive to AOL or MSN at least compelled to pay certain sums of money for acquisition. In contrast, not so much in the accounts.
Google is a great search engine, but this is only part of a series of business mistakes made by the Internet giant. How can I lose 10 percent of its MSN business without paying for it? If Yahoo pulls this off, you wonder who is at the controls of Google and what might be thinking.
Topic: AOL - MSN Beats Out Google (Read 809 times)
