Search Engine Marketing, Search Engine Optimization and Search Engine Positioning Newsletter, October 15, 2005 edition

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(Continued) The RFS Newsletter, Oct. 15, 2005. Page 4
News of the negociations, first reported in The Wall Street Journal, comes as Time Warner is also discussing a joint venture between AOL and Microsoft's MSN unit. The source, who requested anonymity, said that Google and Comcast's discussions with AOL are in early stages and that a deal is not imminent. Spokespeople for Time Warner and Comcast refused to comment about the negotiations and a spokesperson from Google was not immediately available for comment. America Online, which has suffered subscriber losses in its core dial-up Internet access business during the past few years, has recently become a more interesting property for other media and technology companies because of its online content, according to analysts.

The surge in online advertising has also helped boost the unit's fortunes recently. Although AOL's overall sales dipped by 4 percent in the second quarter, advertising revenues were up 45 percent from a year ago and operating income increased by 33 percent. News of the negotiations comes on the heels of continued pressure by corporate raider Carl Icahn on Time Warner to take steps to boost its stock price. Shares of Google, Comcast and Time Warner all fell more than 1 percent on Wednesday.

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