Microsoft May Need To Outbid Google For AOL
from the ah,-the-auction-process dept
You can be sure of one thing: Google understand how bidding works. That’s how they make most of their money, watching advertisers try to outbid each other to get better placement. It appears that Google, with the help of Comcast, may be looking to drive up the price that Microsoft would need to pay if it wanted to buy a part of AOL. Google and Comcast are apparently teaming up to make their own bid for a piece of the company. It’s clearly in Google’s best interest, seeing how about 12% of their revenue currently comes from AOL, and that would likely go away soon after Microsoft took over. Still, Google is probably a bit wary of actually getting involved with the struggling company, so it’s probably a case where they figure the least they can do is drive up however much Microsoft needs to pay — and if Google ends up with a piece of AOL in the process, it wouldn’t be the worst thing in the world. Of course, remember that Google’s ad bidding process also throws in an element of “relevance.” Can they convince AOL that they might be a better partner than Microsoft even at a lower price by being more relevant?