AOLs Choice of Google Leaves Microsoft as the Outsider

This time, it was Microsoft that was snubbed at the last minute. In 1996, America Online agreed to offer Netscape's Internet browser to its five million customers. A day later, the nonbinding agreement was shunted aside when AOL announced that it had instead chosen Microsoft's Internet Explorer browser in a $100 million deal.

As recently as two weeks ago, Microsoft executives said they believed that their company was going to win the endorsement of Time Warner, AOL's parent, to form an advertising venture with AOL and become its provider of Web search technology.

But tomorrow Time Warner is expected to announce that it will instead renew its three-year-old partnership with Google as the provider of search technology. The deal, in which Google will invest $1 billion for a 5 percent stake in AOL, will also significantly expand AOL's advertising opportunities on Google sites, among other things. AOL's Choice of Google Leaves Microsoft as the Outsider - New York Times

Linked by shanmuga Monday, 19th December 2005 7:44AM