Seems to me that if they decided to do it, they would be doing so as a block to MSFT more than anything. They don't 'need' AOL. If I recall correctly, AOL did make up about 11% or so of their revs and, to me, that is on the border of being insignificant and material. Psychologically, I think it will be seen as material and, moreover, as a key point of leverage for MSFT.
For the GOOG business model and, where to from here, I completely agree that I am against it. If they do it, it is a pure protection play and they don't need/want to start playing that game. They need to continue their focus on developing a second source of materiality.
If the AOL deal were to include some new avenue, which it very well could, of media presentation or integration, then perhaps there is leverage there.
Tj |
