04:38 TWX Time Warner nears agreement with Microsoft in online ad deal - WSJ (18.23 )
The Wall Street Journal reports Time Warner (TWX) is closing in on an agreement with Microsoft (MSFT) to build an online advertising service designed to compete with Google (GOOG), say people familiar with the negotiations. After months of on-again-off-again negotiations, the two companies are now focused on a deal that would combine advertising-related assets -- with minimal, if any, money changing hands. An agreement is expected to be struck sometime before year-end, but it is still possible that AOL could choose instead to deepen its relationship with Google at Microsoft's expense. As of Monday, however, initial signs pointed to a Microsoft-AOL alliance, albeit one far less ambitious than many analysts and investors had expected. Under the negotiations, AOL would drop Google as its primary provider of Internet search and use Microsoft's MSN service instead, say people familiar with the talks. Currently, AOL relies on Google's search-engine, and Google gives AOL a cut of the advertising revenue generated by AOL customers. Last year, Google turned over $300 mln in revenue to AOL. Their current contract runs well into 2006. Google Chief Executive Eric Schmidt Monday declined to comment on discussions related to AOL. "They're a valued partner and we look forward to continuing to work with them," he said. |
