Google Wants a Piece of AOL? 223
minuszero writes "BBC News is reporting that "Google is said to be in talks with media group Time Warner about a stake in its internet service provider, AOL."
Talks are reprted to be in the early stages still, but one possibility is a "three-way joint venture to house AOL's content offering, with Time Warner retaining a controlling interest." Current estimates for this sort of move are around $5bn.
The article also claims that Microsoft has also shown interest in tieing up MSN and AOL services." Clearly Google's interest in AOL is their huge CD distribution system, widely regarded as the most advanced in the world as demonstrated by my mailbox.
Take bets now M$ vs. G.... (Score:5, Insightful)
Seriously in the long run it doesn't matter who (if any of the two) wins, the fact that there is competition now will hopefully mean better products, innovation and hopefully an overall better deal for the consumer.
More on topic I don't think it matters who buys AOL I don't think either company is going to do anything else than cross plug there own products....
Re:Take bets now M$ vs. G.... (Score:5, Interesting)
Well, perhaps Google would then be able to convince Time Warner that federating IM is worthwhile. If that's the only thing that would happen from this then I'd be happy about it. Especially with MS and Yahoo! supposedly teaming up.
Re:Take bets now M$ vs. G.... (Score:2, Interesting)
M$ strategy: Embrace and extend all NON-Google online assets to make it a two-party game.
Google strategy: Marginalize M$ as deeply and often as inhumanly possible.
MS and Google can NEVER share space. Even if Google buys a tiny percentage of AOL, it's enough to poison the well so that M$ cannot usurp AOL into its own.
Aside: It's become clear that AOL is comfortable in its role as bastard-manipulate
Re:Take bets now M$ vs. G.... (Score:3, Interesting)
Because your post was not speculation??
Re:Take bets now M$ vs. G.... (Score:3, Insightful)
10 Companies competing to get a larger share of 300 million users will result in better products (in theory anyways).
2 Companies competiting to reduce the field of companies from 5 to 4 will result in a smaller field of companies and will have a negative result on product quality and innovation (in theory again).
Re:Take bets now M$ vs. G.... (Score:3, Interesting)
Comment removed (Score:4, Insightful)
Re:Take bets now M$ vs. G.... (Score:2, Insightful)
So? Even in that instance competition was good for the consumer. Those who bought cheap airline tickets got their tickets and used them. You can't blame competition for short-sighted management running the company at a loss. Nor can you blame it for vote-buying, favor-currying poli
Re:Take bets now M$ vs. G.... (Score:2, Insightful)
Other times the companies involved just rig the market.
If the market is being rigged, a true competitive state does not exist, and the government has to step in (e.g. with anti-trust laws) and restore competition. Competition is nearly always good for the consumer. However, the free market does not always encourage competition.
Re:Take bets now M$ vs. G.... (Score:2, Insightful)
Re:Take bets now M$ vs. G.... (Score:3, Insightful)
I don't believe that. How does it benefit Google for Microsoft to drop $5 billion on a partnership with TimeWarner that sees them acquiring AOL Instant Messenger, ICQ, and kicks Google off the AOL Search Page? $5 billion is chump change for Microsoft. It does not financially impact them...
Re:Take bets now M$ vs. G.... (Score:3, Interesting)
I seriously hope Google does buy a large chunk of AOL from Time Warner. Historically, Warner Communications favored 50% co-ownership deals and even tried to sell 50% of Atari Inc. back around 1980 to IBM. Investing in AOL would not only be wise, but a defensive move against further incursion
Do No Evil (Score:5, Funny)
Re:Do No Evil (Score:5, Funny)
Re:Do No Evil (Score:5, Funny)
That's a work of (non-evil) genius!!!
Mwahahaha!! Ooops.
-Tez
Re:Do No Evil (Score:2)
Hey, if it's good enough for the CIA... If Google has evil it needs doing, it can extraordinarily render it off to AOL to be done. Clean hands all round and nobody gets blamed.
Outsourcing their evil (Score:4, Funny)
They've learned that you can't survive, let alone thrive in American business for long without being evil, so they're looking to partner with AOL-Time-Warner, known masters at being evil, in order to have them do the dirty work.
Absolute brilliance. Someone must have gotten a nice bonus for that idea.
Oh! I just realized the best part. They're outsourcing their evil to AMERICAN workers, not an overseas seat shop, so even while outsourcing their evil, they themselves aren't being evil.
Re:Do No Evil (Score:3, Insightful)
Google is a publicly traded company. They by law has to maximize the profits for their shareholders. There is a difference between being ethical and being legal. When they say DO NO EVIL it may mean do legal things. They have never said we follow some ethics as dicatated by some religion or some community.
Re:Do No Evil (Score:2)
Re:Do No Evil (Score:5, Insightful)
I mean take a hypothetical: a majority of the shareholders decide to donate all income to an orphanage. Now are you saying that by law they can't do this, as this would not maximise profits?
Surely so long as they are doing what the majority of shareholders want, then there is no requirement to make a profit, right?
Re:Do No Evil (Score:3, Informative)
Re:Do No Evil (Score:3, Insightful)
By law, they have to follow the terms of their corporate charter.
Re:Do No Evil (Score:2, Informative)
No, by law they have to obey their charter. They could have easily written some legalese that amounts to "do no evil" into their charter. Anyone investing into the company expecting them to "do evil for money" would be disappointed, but would have no legal recourse since they would be the ones who failed due diligence in their investment research.
Re:Do No Evil (Score:2, Informative)
Re:Do No Evil (Score:5, Insightful)
As others have already noted, Google is legally required to obey their corporate charter. In some cases this will mean maximizing profits, but that isn't always true.
Also, sound and responsible management may involve foregoing short-term profit for long-term gains. Moving all the staff into smaller cubes and replacing them with temp contract workers will result in a short-term bump in net earnings, but it will cost a software company in the long-term when they can't attract or retain experienced and competent programmers.
Finally, one of Google's most valuable assets is intangible; Google's reputation for being both innovative and not evil has made them the darling of programmers, engineers, and even Wall Street. Tarnishing their reputation for being 'not evil' would be hurting the brand name and identity that they've worked so hard to build. The guys with the money invest in Google because Google can attract the best engineers, programmers, designers, and thinkers on the strength of Google's reputation. Damaging that reputation would be a grossly unsound move for management.
MOD PARENT UP (Score:4, Insightful)
Would Google have the brain-power they have now if not for the whole "do no evil" policy? Not likely. These are people who can choose to work anywhere, or choose to find a place in academia if they find the corporate world too repugnant. Google attracted them, it didn't "buy" them. It doesn't keep them on through intimidation and bribery, but through interesting projects and creative flexibility.
Re:Do No Evil (Score:2)
Re:Do No Evil (Score:2, Informative)
Since TW ownes CNN and several other media outlets, it was forgotten that the debt transfer was part of the deal.
This is not to say that the merger was, in an
Re:Do No Evil (Score:2, Interesting)
Re: (Score:2, Insightful)
Re:Do No Evil (Score:2)
Re: (Score:3, Funny)
Google's interest...? (Score:5, Insightful)
Re:Google's interest...? (Score:2, Funny)
Re:Google's interest...? (Score:3, Interesting)
*Retaining the Google relationship with AOL Search.
*Gaining control of AOL Instant Messenger & ICQ to strengthen GoogleTalk.
*Using the AOL brand to sell wifi service to Joe Sixpack.
*Gaining control of WinAMP to continue development for Google's own purposes or to sacrifice it to Apple with an iTunes partnership deal.
*Switching the AOL bro
Great..... (Score:4, Funny)
Re:Great..... (Score:3, Funny)
More Junk Mail CD's (Score:2, Funny)
Re:More Junk Mail CD's (Score:2)
The Death of Google? (Score:5, Insightful)
The death of Google will not come entirely because of somehting like AOL, but rather from a lack of direction. To me it seems as if Google is going 10,000 directions at once and eventually this will cause it to fracture. They got a bucket of cash from the IPO and it seems like they can't find a way to get rid of it fast enough.
Soon enough that bucket will be empty and then Google is going to have a huge basket of toys that they won't know what to do with because the only thing they have in common with one another is that they are owned by Google.
Re:The Death of Google? (Score:5, Interesting)
Regards,
Steve
Re:The Death of Google? (Score:5, Insightful)
Then a google search shows that Legg Mason owns like 15% of google, actually one of the largest pieces of the pie. They've been in since day one.
The point of which is to say, Wall Street will put its money in places where market psychology will assure quick returns. Satellite radio is an example. Howard Stern even admitted that his signing was the equivalent of a stock run-up, as convergence would quickly kill satellite radio. The audience fed into it by buying a couple of subscriptions; and the car deal was the cincher... a few people are going to get very rich before satellite radio fails.
Google benefits from good market psychology. Apple benefits from good market psychology.
AOL used to have this psychology, but they slept on innovation and got left behind. So the street walked away, and subscribers started bailing.
Then something happened; subscriber base loss stabilized a bit. AIM is the instant messenger analog to google; a free service that has the lion's share of the marketplace.
It's common for kids in general to be more technically savvy than their parents, but the parents tend to make internet decisions in the household. Internet=AOL is easy for the technophobe parent to understand, and because it isn't broken, there is no need to fix it. This hooks the KIDS in the household onto AIM. I've seen this happen - I help my nephew with his math homework on AIM all the time because his mom equates the internet with AOL, despite the fact that they have comcast broadband at home. There is also the perception that AOL is the easiest way to get your kids online. So the subscriber number for AOL can be misleading, because they have like five or seven screennames per subscriber account. And AOL parental controls gives you a very accurate understanding of your audience demographic, a significant percentage of whom are pre-brainwashed emerging impulse consumers. The American economy is artificially propped up by impulse and trend consuming, so these kids mean a lot to the economy. Hollywood alone lives on summer blockbusters, which depends almost completely on the 13-21 year old crowd. That's why you rarely see an R rated film before the fall.
So ironically, investing in AOL is one of those paradoxically sound investments. A dying company with a largely ignorant critical mass user base waiting to be told what to do. It's not a quarterly return investment, so it's not sound for the guy up the block or the cash-out investor. If you're a company who wants eyeballs and an association with what Americans perceive the internet to be, then it's a good move that should yield cash down the line as you get those eyeballs where you want them. Fiscally, they have diversified revenue stream that is relatively consistent.
The other side is that you have to pick this up even if you don't want to, because it leverages considerable revenue power to whomever does.
I'm surprised that Microsoft hasn't barked down this tree before. It would have been a cheaper purchase a couple of years ago.
Re:The Death of Google? (Score:4, Funny)
Welcome, Time Traveler! You appear to have drifted from the dark ages of 1999, to the refined age of TWO-THOUSAND-AND-FIVE! Let me show you around, but watch your step at the door, there's some form of unknown bubble residue decaying in the streets beyond.
Re:The Death of Google? (Score:3, Insightful)
This is a process known as research. You put a little investment into a lot of possible approaches, and then turn those that look promising into real products (development - the other half of R&D).
This concept may be unfamiliar to you - it's not very popular with large companies these days.
Re:The Death of Google? (Score:2)
I guess that you are OK with that. You should invest in Google stock. By your logic, Google should branch into everything from the hydrogen economy to animal husbandry.
Re:The Death of Google? (Score:2)
Once the bucket runs dry Google will just materialize some more shares out of thin air and raise another $4.11 billion [reuters.com].
Re:The Death of Google? (Score:2)
Re:The Death of Google? (Score:3, Informative)
More like Time Warner was the kiss of death for AOL. TimeWarner still has not paid off on the synergy promised by the original Time and Warner Communications *merger* of 1989...followed by acquiring Turner Broadcasting in the mid 90s.
AOL *merged* with Time Warner to get access to Time Warner Cable, but the plan failed. AOL should have be
Re:The Death of Google? (Score:2)
Advanced CD distribution system? (Score:5, Funny)
What's so advanced about a room of 10,000 monkeys trained to stuff CDs into shipping packages? :-j
Re:Advanced CD distribution system? (Score:2)
http://music.aol.com/songs/new_releases_full_cds [aol.com]
Myabe that's what the article meant?
Re:Advanced CD distribution system? (Score:2)
CD/RW (Score:5, Funny)
Re:CD/RW (Score:2)
Edging into AIM? (Score:4, Insightful)
Re:Edging into AIM? (Score:2)
Maybe Google realizes this and simply wants to buy a successful IM system outright.
Re:Edging into AIM? (Score:2)
Re:Edging into AIM? (Score:2)
AOL has a lot of subscribers, this customer base s by far the most interestign asset they have, esp. if you are planning on moving into the ISP business (which Google seems to be showing some interest in)
Re:Edging into AIM? (Score:2)
AIM, ICQ, AOL Search, AOL Music, Moviefone, MapQuest, DigitalCities, WinAMP, the AOL Browser (switching it), the recently acquired WebLogs Inc., etc. etc. etc.
Fixing the spelling...? (Score:5, Funny)
AOL/GOOGLE (Score:2, Informative)
AOL - The most over valued company in history... (Score:3, Interesting)
When the AOL/TW merger happened I remember nearly borking when I saw how much it valued each AOL customer at. Even with $5bn we are talking of THOUSANDS of dollars per AOL subscriber which to my simple mind sounds like a ridiculous amount of money. Clearly TW is desperate to get something out of the waste of space it was saddled with, but I'm surprised that anyone would offer this much for it.
Of course part of the reality here is that MS want AOL to replace Google's search engine with their own, and Google want AOL to keep using it.
Could Google really get that much shareholder value out of targetting the AOL customer base? Or is this a great example of how the stupid valuations of 2000 are back
When your own valuation is equally stupid... (Score:5, Insightful)
Yeah Google is doing cool things, moving quicker than their competitors, but they are horribly overvalued. The best thing for them to do is buy up as much IP & resources as possible to form the basis of an enduring and broad based company.
Re:When your own valuation is equally stupid... (Score:2, Insightful)
Re:AOL - The most over valued company in history.. (Score:2)
Re:AOL - The most over valued company in history.. (Score:2)
In fact, the specter of that metric is why AOLTW is valued as low as it is. Until AOL gets measured on something other than it's monthly fee divided by it's membership, nobody is going to care how much profit it makes.
If Google did have a stake in AOL, it'd have access to 50
search engine rankings (Score:2, Insightful)
google scared. (Score:2, Interesting)
What's the worst company we can get involved with? (Score:3, Funny)
Today, the Rebel Alliance joined forces with Jabba the Hutt in their battle against the Empire.
In other news, the Empire has released yet another patch for their new secret space fortress in hopes of getting the station to run properly.
I seriously hope that nothing comes of this. I think of Google as a completely net based company, getting involved in physical medium is something that I would rather they did not do.
I guess this is all part of Google's campaign to take on projects that are failing miserably and turn them around. Although, NASA is a heck of allot easier to fix that AOL.
This could be big... (Score:2, Interesting)
Linux/Open source CDs ? (Score:2, Informative)
I would like to see Google get AOL (Score:4, Insightful)
Microsoft wanted only AOL because they want Google dead. So, it would prove Microsoft to stop playing these silly games with their monopoly power. And it would be a middle finger for them..
But let's see. If it is all business, everything will be fine. If it will be some "I want you to be dead" overtones like Bill and Balmer have, then, well it wont end very good.
How? I don't know.
Duck if you're in Redmond... (Score:5, Funny)
Kinda makes sense... (Score:2)
Not that I have any inside info or business knowledge, but yeah, I can see reasons why Google would be interested.
This could get interesting... (Score:2, Interesting)
/readies popcorn
Clearly? (Score:3, Insightful)
Uhm... Why would Google want to associate itself with a company whose history has shown it can't keep up with the times, for a mailing scheme? If there is a genuine interest in Google to buy stock in AOL it has to be for more than that, because any idiot with half a brain can put together a decent distribution system. Netflix did it in a year -- imagine what Google could do?
Waste-of-Money-Dept? (Score:2)
Google + AOL? (Score:3, Funny)
Finally! An indisputable reason to call the company Gay-O-L.
What will happen? (Score:3, Insightful)
Hi slashdot editors (Score:2, Insightful)
From the header of the fucking article : "Time Warner's chief executive has denied reports that it may be about to sell a stake in its America Online (AOL) unit to Google and Comcast."
Fuck it really, slashdot is a total waste of time now.
Slashdot used to have some informations, now it's just garbage, slashdot is as worse as FOXNEWS ( hello the Japanese mafia using a Russian-made electromagnetic generator to launch terrific storms against the U.S. mainland => http://www.f [foxnews.com]
Re:Hi slashdot editors (Score:2)
Yeah, and Steve Jobs at Apple said they wouldn't market a flash-based iPod yet they later brought out the Shuffle and the Nano. Jobs also spoke out against an iPod Video model, but now all the new iPods do video. Shall I mention the two-button mouse?
There's a lesson to be learned in that.
Bad title (Score:4, Funny)
Heh, the obvious title to me was rather:
Google Wants a Piece of Shit?
Cd Tracking (Score:2, Funny)
address faster than my bills. their evil.
Google Nose (Score:2)
Here's earlier article from Philly Inquirer (Score:2)
Oops, here's the link (Score:2)
Plaster the world with discs! (Score:3, Interesting)
Actual revenue stream? (Score:5, Insightful)
Could google simply be looking at purchasing a consistent revenue stream? I mean, how does google make money? Where is its steady source of revenue? There's adwords and......umm....the five people that actually bought google earth pro? They're not really selling much of anything. It's nice that they're being altruistic, but if I'm an investor, I'd like to see them actually make some money
AOL, if purchased cheap enough, is a cash cow. Scamming a customer base out 22 bucks a month for dial-up and "content" has to be able to earn you a profit once you go all hack 'n slash on the layers of fat that have built up around the company. There's some decent infrastructure there, and a recognizable brand name. It ain't worth 5 billion dollars, but it's worth something.
Any deal for AOL probably includes whatever's left of Netscape, maybe there's something there worth having, too.
Re:Actual revenue stream? (Score:2, Insightful)
Comment removed (Score:5, Funny)
AoL Got me Through College (Score:2)
Google Talk (Score:2)
Re:First bad analogy of the thread (Score:2)
Re:First bad analogy of the thread (Score:3, Insightful)
How about Rolls-Royce buying a Ford factory in order to learn how to mass-produce their cars?
Google, somewhere, somehow, has some massive omni-goal. It may be that they want to own the Internet. Or it may be something else. Regardless, they may be trying to learn the basics of and improve AOL's ISP stuff. Or maybe negotiate for the IM access.
Either way, if they apply "Do No Evil" to AOL's billing, I might be able to quit them finally.
Re:First bad analogy of the thread (Score:2)
Well, if the example doesn't work, then look at it from reverse, Ford buying part of RR in order to learn about their quality control. Google wants a jumpstart into the ISP business, and they probably think improving AOL is easier than building their own quality ISP.
Re:First bad analogy of the thread (Score:2, Informative)
Two couples have walked into the club looking for some action.
Google with its bride, AOL.
and
Microsoft with its 'acquired-just-in-time' escort, Yahoo!
Everyone is hoping for a little bit of action in the club...but doesn't wanna to totally lose their way.
Unfortunately, jealousy usually takes over in these sorts of situtions...which is when things really start to get hectic.
Re:First bad analogy of the thread (Score:2)
But Microsoft is the ugly old rich guy that nobody wants to play with so he has to sit back and watch. Wow, interesting allegory to Steve Ballmer.
Re:First bad analogy of the thread (Score:2)
Ford owns Jaguar, Aston Martin, (Range) Rover, and Volvo.
VW owns Lamborghini. Porshe is trying to reacquire VW.
Your analogy is moot, me thinks.
Re:First bad analogy of the thread (Score:2)
I just meant that Porsche is trying to get VW back...which they've been separate since...the end of WWII? A few weeks back, Porsche brought its stake in VW up to 20% and indications are they want more. They are citing savings in components, economies-of-scale logic. The same logic used by Daimler to justify the acquisition of Chrysler half a decade ago.
Re:Mark my words` (Score:2)