Search Engine Optimization News Blog

And a legend bites the dust. AOL, a former ‘contender’ in the internet field is reportedly soon to be gone, as Time Warner basically throws in the towel. The beleaguered company has been effectively cut in two by Time Warner, and is being shopped as separate businesses.

Google struck a major blow when they announced that their AOL stock was considered ‘impaired’, and seems uninterested. Yahoo and Microsoft, on the other hand, might be vying once again – this time for AOL’s still considerably valuable online advertising segment.

The struggle Microsoft has in particular arena of monetization makes it seem like this would be a perfect opportunity for the Redmond based giant, but Yahoo has indicated they are willing to match Microsoft’s offer and go one better.

AOL’s dial-up business, on the other hand, is seeing only one major buyer with interest – but they seem serious. EarthLink is pursuing that arm of the company with a clear goal of acquisition – provided Time Warner doesn’t get too greedy. How much can a dial-up be worth, after all?

Actually, although broadband is becoming more available, there are plenty of people for whom it is not available, and satellite hookup can be costly. The dial-up business has been depressed compared to its hey-day, but there is still a steady demand and AOL rakes in a dependable stipend from that alone.

Perhaps the dial-up transaction could be the more lucrative one in the long run – advertising has a lot of competition, while AOL is really the only major dial-up option left with any sort of backing.

Meanwhile, Google sits on a 5% stake and seems increasingly unhappy with it. The $1billion dollar outlay was made when AOL was considered to be worth $20 billion; now conservative estimates put it nearer $10 – if that.

Google has the option to force Time Warner to put AOL out as an IPO or buy back the stake, but so far shows no intention of going that route. If AOL is sold in parts, the leading search giant may or may not take a hit, but they seem to be preparing for the worst.

Meanwhile Yahoo seems intent on building up their own advertising base with an acquisition at the very moment that the Google partnership begins – unless Microsoft gets smart and snatches it out from under them. Or Microsoft being smart already, and counting on Yahoo to self destruct, leaving the way clear to the number two spot?