GOOG-AOL Logic

David Schatsky | December 20, 2005, 08:14 PM

Pretty simple, really.

AOL gets
- more traffic via Google searches
- more ad dollars from search and non-search advertising, both Google-powered and otherwise
- to build their ad revenue as their subscription revenue shrinks

Google gets
- to organize more of "the world's information and make it universally accessible and useful" with deeper ties into AOL's content
- expand their AdSense business across AOL's network (I'm guessing)
- poke a finger in Microsoft's eye

Is it worth $1 billion and $300 million in ad credits? Is AOL worth $20 billion? I'm still working on the multi-billion dollar price tag for Skype and will have to get back to you.