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Google and AOL Extends Partnership

by Winston Sih | September 2, 2010September 2, 2010 12:36 pm PDT

Announced Thursday, Google and AOL announced that they will be extending and expanding their global partnership.

The two web giants have signed a renewal for five years that will foresee Google and the continuation to offer its search services to AOL’s “content network and properties.” Google will also continue to provide AOL with its advertising products across all of their sites.

The companies have agreed to a revenue-sharing agreement, but they didn’t release the details of that deal to the general public.  Google will as well power AOL’s mobile search, while AOL will make all of its video content available on YouTube.

Five years ago when Google and AOL first entered their partnership, Google agreed to invest $1 billion for a 5 percent stake in the Time Warner-owned AOL. They also gave AOL a $300 million credit for use on the search giant’s ad platform. AOL used that credit to invest in advertising across Google.com and publisher Web sites.

In the latest deal, neither Google nor AOL mentioned that the search giant’s willingness to assist AOL to increase the search effectiveness.  Regardless, AOL is quite pleased with the deal and the ability to continue its relationship with Google.  “Today is another important step in the turnaround of AOL,” AOL Chairman and CEO, Tim Armstrong, said in a statement.

It’s a development that hasn’t exactly been fruitful. Last month, AOL’s latest quarterly earnings missed analysts’ already low expectations by a good margin.


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