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Friday, December 23, 2005

Google-AOL from China with Love

Google-AOL has been hot in the news. Google and AOL are now partners.



According to ccw.com.cn, Google is the biggest winner for this deal. To be frank, I have never visited AOL's web site until now; it is because I thought it is only meant for American.

According to the article above, some interesting facts to note here..

Fact #1
在经过一年的谈判后,时代华纳和Google最终公开了一份协议:Google以10亿美
元的资金获得AOL 5%的股份。这一联盟的最初目的是改进AOL的业务前景,但最终它可能给Google带来更大的实惠。

--> After nearly one year of negotiation, Times-Warner and Google finally landed on a deal which would allow Google to own 5% of AOL's share amounted to 10 billion USD. This is by default a way to help the struggling AOL with its business development, however eventually the biggest winner would be Google.

Fact # 2
对于Google而言这是一个很大的变化。Google将向AOL提供3亿美元的“信用额度”,供AOL用来购买与关键字相关的搜索广告。这将有助于提高AOL网络的流量,使得它能够收取更高的广告费,提高它自己的利润率。

--> This will be an epochal moment for Google. It will provides AOL with credit facilities of 3 billion unit for keyword-matching advertisement. This is expected to bring even greater traffic to AOL; enriching its advertising renenue. Thus, out of the 3 out of 10 billion is being contra here.

Fact # 3
这一交易的另一个副产品是:时代华纳的首席执行官帕森斯可以利用与Google的交易,回击亿万富翁股东卡尔及其盟友分拆时代华纳的企图。卡尔在一封信函中表示,如果时代华纳与Google达成交易,那将是“灾难性的”,因为这一交易将给此后提高时代华纳股东价值的交易造成麻烦。

--> Times-Warner's CEO's Richard D. Parsons(官帕森斯) faced objection from largest shareholder Carl Icahn (卡尔) who opposed with the reason that this deal would bring disastrous effect to Times Warner stock performance. Well, perhaps it might be true in terms of market confidence level in the long run.

Fact #4
根据新的协议,被称为“AOL Marketplace”的AOL和Google之间的全球广告合作关系将会进一步扩展。时代华纳将能够以它自己的品牌向广告客户销售Google的搜索工具。用户在进行搜索时,Google将帮助AOL改进页面的安排。Google Talk将与AOL的AIM实现兼容。它们还将在视频搜索方面进行协作,有助于提高时代华纳-AOL的视频内容的知名度。

--> The newly setup resulted from this deal is called AOL Marketplace where AOL has the rights to rebrand the tools provided by Google. Google will help AOL with content management. On the other hand, Google Talk and AOL's AIM will be integrated.

Fact #5
在Google与微软的竞争中,这一交易还可以给予Google以必要的支持。微软也一直希望与AOL联姻,一段时间以来,一些分析人士一直认为微软获得AOL青睐的机会要大于Google。现在,微软必须找到其它方法来改进其MSN互联网业务部门的前景。在付费搜索等一些重要领域,MSN落后于Google、雅虎这些竞争对手。

--> This deal will provide Google with more edge in its battle with Microsoft which the latter has been on high hope of dealing with AOL. Previous analysts have concluded that Microsoft has higher chances over Google for such deal. Now, Microsoft is being sidelined and must derive a new strategy to bing its MSN to the next level.

Thus this is a quite obvious reason why Google wanted to have collaboration with AOL; which is because Microsoft was having similar interest previously.

Are they up to grab for AOL's network or net worth ?

Here is Google's bottom line about the deal.