Google announces AOL deal

Just as expected, Google today announced the purchase of a 5% stake in AOL for $1 billion.  Some have speculated this partnership may lead to the future integration between AIM and Gtalk, the press release confirms this agenda.  In order for Google to have an instant communicator that competes with the likes of MSN and Yahoo, this partnership is necessary.

The deal once thought was going to Microsoft has found it's place in Mountain View.  The two companies were at all out war looking to snap up a piece of AOL, but the package Google offered which landed the gig can be seen in the pess release:

Under the strategic alliance, Google and AOL will continue providing search technology to AOL's network of Internet properties worldwide. The agreement's broad range of new features for users and advertisers include:

• Creating an AOL Marketplace through white labeling of Google's advertising technology - enabling AOL to sell search advertising directly to advertisers on AOL-owned properties;
• Expanding display advertising throughout the Google network;
• Making AOL content more accessible to Google Web crawlers;
• Collaborating in video search and showcasing AOL's premium video service within Google Video;
• Enabling Google Talk and AIM instant messaging users to communicate with each other, provided certain conditions are met; and
• Providing AOL marketing credits for its Internet properties.

AOL and Google have also agreed to extend the term of their existing European relationship, and, subject to mutual agreement, they may extend the AOL Marketplace internationally. In addition, Google, AOL and Time Warner may choose to expand the new partnership to Time Warner's other advertising opportunities.

 Most of this press release was expected, but the possible integration between AIM and Gtalk is good news for Google.  Gtalk has had a slow start, but this should help it become a more viable alternative to MSN or Yahoo Messenger.