Take a look at BusinessWeek's Microsoft's deal would have made AOL a full partner in search-ad revenue. And considering the companies' combined scale, it likely would have been very lucrative. But there wasn't a short-term benefit. Microsoft wasn't offering an equity investment, either. That's why Icahn pushed hard for another deal. "At the end of the day, it was a question of who was making the decisions," an exec close to the talks explains.
Partnering with Google was the lesser of two evils. Sure, it involved Google buying 5% in AOL, but at the same time, the deal would make it easier for AOL to be sold off - at least easier than if the company had partnered with Microsoft.
Still, it seems Icahn is determined to see the breakup of AOL.
Icahn believes that a breakup serves the longer-term interests of the businesses. The pieces might generate more value as part of another organization. The assets have plenty of potential buyers. Yahoo is believed to have submitted an offer to buy all of AOL, which was rejected. GE (GE) or Universal might make a good buyer for Warner Studios.
Among all of the hoopla surrounding the deal, it appears few are focusing on what I believe is the most interesting angle of the entire story. Google's internet marketing consultant and considered one of the world's most respected and interactive search engine marketing experts. Andy has worked with many Fortune 1000 companies such as Motorola, CitiFinancial, Lowes, Alaska Air, DeWALT, NBC and Experian.
You can read his internet marketing blog at andy.beal@gmail.com
Google's AOL Investment a Likely New Strategy
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