The Wall Street Journal is reporting that Time Warner and Microsoft are in negotiations to combine their advertising related assets in order to take on Google. It is said to be a no money deal and strictly to leverage both of their assets to knock Google out of the top spot in online advertising.
Word should come down before the en of the year.
The Journal said that, under negotiations between Time Warner and Microsoft, AOL would drop Google as its main Internet search provider and switch to Microsoft's MSN service.
Under their current agreement, Google derived about 11 percent of its first-half revenue from AOL, which also generates substantial revenue from the contract.
The Journal said Microsoft and Time Warner are also negotiating to create a joint advertising sales force to sell online ads across both the AOL unit and Microsoft's MSN. Both services would remain under the control of their current owners, according to the report.
If this comes to fruition Microsoft would start out with quite a large network to sell advertisers on when choosing where to display ads. It could give their Pay Per Click business a much needed jump-start.
Posted on Wed Dec 07, 2005 at 08:48 AM | Permalink | Email This | Blogroll IOA! |
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