Google, Comcast court AOL
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Posted in Financial News, 13th October 2005 11:49 GMT
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Google and US cableco Comcast are reportedly interested in paying up to $5bn for a slice of AOL, according to a flurry of reports from the US.
Time Warner is already holding talks with Microsoft about possible joint venture between AOL and MSN.
Now it's emerged that Google and Comcast have their own ideas for a possible tie-up. Why?
Well, the WSJ reckons that any approach from Google is based partly on self-preservation. AOL accounts for Google's biggest single source of revenue and if AOL were to team up with MSN, then Google would lose out.
Snuggling up to AOL would preserve that revenue stream and give Google the chance to expand its search empire.
For Comcast, hopping into bed with AOL and Google would give it access to a massive audience to flog its broadband services.
And for AOL, any deal would give its parent an injection of cash that would help appease some grumpy investors. ®
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