September 2, 2010
Google, AOL Reach Five Year Search Agreement
Google and AOL reached an agreement on Thursday that will have Google power Internet searches across AOL properties while AOL video appears on YouTube.
AOL and Google said the five-year deal includes a revenue-sharing arrangement.Microsoft was also trying to reach a search agreement with AOL, but the company eventually decided to continue its long-term partnership with Google.
"Today is another important step in the turnaround of AOL," AOL chairman and chief executive Tim Armstrong said in a statement.
"AOL users will be getting a better search and search ads experience from the best search company in the world -- Google," said Armstrong, a former top executive at the Internet search giant.
"After nearly a decade-long partnership in search, we're looking forward to expanding our global relationship to mobile search and YouTube," he said. "All aspects of our partnership will be improved by this deal."
Eric Schmidt, Google's chairman and chief executive, told AFP News that the agreement with AOL "combines Google's expertise in search and advertising with AOL's strength in online content."
"It's particularly exciting to see our relationship expand into video and mobile," Schmidt said. "These areas are now at the heart of users' online experiences and at the core of both of our businesses."
AOL merged with Time Warner in 2001 during the height of the dot-com business boom.
AOL was spun off by Time Warner in December into an independent company.
Armstrong has been cutting costs since taking the reins of AOL last year and he said that he has plans to refocus the company on "content, ads and communications."
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