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It's also important to consider the counterfactual where it was Microsoft who had landed that search/ad deal. If I remember the discussion correctly, many consi
by mikedouglas 17y ago
It's also important to consider the counterfactual where it was Microsoft who had landed that search/ad deal. If I remember the discussion correctly, many considered this a defensive move on Google's part. I can't imagine that Google had a high opinion of AOL's prospects, so I assume they thought blocking MS was worth the loss.
- seldo 17y agoWell, let's see if was -- they did this in December 2005, meaning the $750m works out to about $17m per month of the deal. Does Google make more than $17m per month from its partnership with AOL? Almost certainly, but it probably hurt a lot. They were expecting to be able to spread the cost over a lot longer, I'm pretty sure.