These are the crown jewels of the AOL-GOOG deal...it is not about the ads

Summary:Everyone is focusing on AOL-Google advertising partnership. . .but the crown jewels of the deal are elsewhere and very evident. . .

Google's $1bn deal with AOL is not about the advertising deal (this is just the free cherry-on-top that blocks MSFT).

The meat of the deal is the access to the millions of AOL instant messenger users, and integrating that with the sparsely populated GTalk. Not to mention AOL's already integrated AIM platform. Comms platforms and pipes is the future.

And you know what? It is a bargain. Take a look at my prior post on this subject.

[Caveat:  GOOG risks creditability on favorable AOL ad placement-- and also on any honey pot advice :-)]

Either way, GOOG or MSFT is a cuckoo's egg in the nest, imho.

Topics: Tech Industry

About

In May 2004, Tom Foremski became the first journalist to leave a major newspaper, the Financial Times, to make a living as a full-time journalist blogger. He writes the popular news blog Silicon Valley Watcher--reporting on the business of Silicon Valley.Tom arrived in San Francisco in 1984, and has covered US technology markets for leadi... Full Bio

zdnet_core.socialButton.googleLabel Contact Disclosure

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.