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Thursday, October 13, 2005

Google, Comcast and AOL

Interesting what one learns from these news. Today, the story making headlines is about Google and Comcast joining their hands to get a stake in AOL. This comes on the lines of Microsoft eyeing AOL. I was wondering what guided this deal.

To give a little backgrounder, 99% of Google's revenue comes from advertising. Its those Google ad columns that people include on their website as non-intrusive listings. Whenever someone visiting a site, clicks on Google's Ads, its a source of revenue for Google. Having said that, I was surprised to find that a good part of Google's business came from AOL. Google powers AOL's search. Here is what a Yahoo News article states:

Any deal between AOL and MSN could threaten Google, since AOL is major contributor to Google's thriving Internet ad business, accounting for 11 percent of Google's $2.6 billion in revenue during the first half of this year.

AOL leads the IM subscriber pack with 51.5 million AOL IM users in the US. Microsoft IM trails behind with around 24 million users and Yahoo with around 21 million. Thats where MS and Yahoo joined hands to make their combined presence of Yahoo and MSN cater to 49.5 million of their joint users.

I also found while referring to the news on this deal is - Yahoo is the no. 1 Internet website. AOL comes at second. Refer to this article for more.

AOL is the Internet's No. 2 Web site network with 112 million U.S. visitors last month, trailing Yahoo (YHOO.O: Quote, Profile, Research) with 123 million.

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