Google & AOL Renew Revenue-Sharing Agreement
AOL continues to make strides in hopes of returning to their glory days of turning a profit. The company
reported a loss of more than $1 billion in the second-quarter, most of it being attributed to its
writing down the value of certain assets. But today they are trending due to
their recent 5 yr renewal of a revenue-sharing arrangement with search giant Google. The latest deal builds on their existing agreement
and now includes online video as well as mobile search capabilities, extending to AOL mobile. AOL videos will be
distributed on Google's YouTube and Google will continue to power AOL's search, for a split of the proceeds, of course.
Chief Executive Tim Armstrong told the Washington Post, "First and foremost in the turnaround, one of the things we've been doing is positioning
the company for where the puck is going.....
AOL recognizes that mobile is important and is taking active steps to put the company in that direction."
Armstrong says the company will "focus on offense" and says AOL will be unveiling new web products this fall.
Just this week, AOL purchased California-based Rally Up, a startup company that specialized in mobile apps. They also recently
purchased Patch, which features a network of news source websites. And just as fast as they make their
strategic purchases, AOL is turning the page, splitting from Time Warner, getting rid of ICQ instant messaging and dumping their
social network site Bebo.
Armstrong goes on to say that AOL has hired hundreds of employees and
says the company has $500 million cash in hand, stating that his current plans are to "hoard" the money, only using it for acquisitions
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