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(Continued)     The RFS Newsletter, Sept. 24, 2005. Page 2
The Microsoft ‘acquisition’ of AOL would surely lead to an established partner where MSN could showcase its MSN Search Engine and MSN AdCenter Keywords advertising (to be launched by MSN this year). The acquisition would also add to MSN’s registered customer base, edging it closer up the ladder to Yahoo. However, Google currently powers AOL’s search engine and Google AdWords ads are served on AOL during search results.

Additionally, Google revenue generated form its AdWords partnership with AOL is 12% of Google’s total revenue model. As a defensive move to keep that revenue, Google may enter a bidding war with Microsoft over AOL. Besides keeping its revenue, Google would also add strengths from the deal similar to what MSN would gain; registered members and content channels. Wouldn’t such an action by Google be taking the company into the wrong direction? Google’s recent acquisitions have been innovative technology companies and more cutting edge than AOL.

<<< Pr. page     Next: Google's ambitious program to scan millions of library books >>>

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