Search Engine Journal

Yahoo Leaves AOL Bidding to Google & Microsoft

Yahoo has reportedly dropped out of the bidding for AOL, leaving Google and Microsoft as the current parties interested in purchasing AOL from Time Warner. According to The Independent, a key stumbling block between Yahoo! and Time is thought to have been the media giant’s insistence on retaining a controlling stake in AOL.

If Google makes the AOL purchase, it will give the search giant a means of building a portal while expanding its current search relationship with AOL. 10% of Google’s AdWords revenue comes from its current agreement with sponsored search and organic search distribution among AOL properties.

Likewise, if Microsoft prevails and buys AOL, it will give MSN a springboard to build upon MSN’s current MSN Search technologies and the MSN adCenter advertising service. Yahoo dropping out, however, may be a sign that this AOL hooplah may just result in some kind of long term simplified partnership on minority investment in AOL by Google or MSN.