Google is going to buy a 5% stake in AOL for $1 billion. Google will continue providing AOL with paid search advertising technology for 5 more years.


Google is going to buy a 5% stake in AOL for $1 billion. Google will continue providing AOL with paid search advertising technology for 5 more years.

AOL will sell display and banner ads to other websites using Google’s ad serving technology.

“A deal with AOL would set the stage for Google to expand into display advertising, taking dead aim at Yahoo, which is entrenched in both paid search and display advertising. Together the different types of advertising make up a market of roughly $12 billion annually.” [Source]

2-4% of Google’s revenue comes from AOL on a net basis.

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