AOL Renews Google Agreement, Making Progress After Spin Off? (AOL, GOOG)
Google (NASDAQ: GOOG) and AOL (NYSE: AOL) renewed a search agreement Thursday. The five-year deal includes revenue sharing on a per-search basis, further solidifying AOL's advertising revenues.
According to a Reuters report, "For the six months that ended in June, AOL's advertising revenue associated with the Google relationship was $209 million."
"We took a very specific tact to this deal," said Tim Armstrong, chief executive of AOL and a former executive with Google.
"We wanted a better product and better revenue and better distribution of AOL content," he said about choosing to continue to partner with Google.
AOL has been under the market microscope since it was spun-off by Time Warner Inc. (NYSE: TWX) last year. The 25-year-old company has been shedding assets in an effort to emphasize content and attract advertisers.
Most notably, the company sold its social network Bebo, focusing on rebuilding its ad platform. While the stock has sunk since hitting April highs of $29, AOL hasn't been able to break the $20 barrier. It appears that investors believe management is on the right track, and bulls could be close behind.
Shares of AOL are up 0.44% this afternoon, to $23.00. Google is up $1.90, to $462.23.
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