SEO News

Google's AOL Stake Rolling Into Holding Company It Can Take Public In 2008

by , Comments

I got a research note from Ben Schachter over at UBS Investment Research flagging that Google has now filed an 8-K form on the AOL deal that sheds light on some new details, include rolling its AOL stake into a new company that it can take public in 2008. You'll find the filing here. Highlights below:

  • Some of the exact details of the agreement are still being worked out. That's expected to complete the first quarter of next year.
  • Should some details not be agreed, a resolution will be reached through binding arbitration.
  • Google is going to hold its 5 percent share of AOL through a new limited liability company (either called HoldCo or that being the term used to indicate a yet to be named holding company)
  • Google can sell the HoldCo interests in a public offering as of July 1, 2008 or afterward (so you're were right, John -- it is a second IPO, but in a different way than you thought!).
  • AOL can prevent a sale by exercising its right to purchase HoldCo from Google at an appraised fair market value.
  • The deal runs for five years, substantially longer than any previous deal Google and AOL have had.
  • It covers AOL being able to sell text ads on its own site in addition to carrying the same type ads from Google.
  • It covers AOL being able to sell display ads on the Google network.
  • It covers AOL being promoted on Google "consistent with Google principles," plus AOL receiving ad credits.
  • Google will fund marketing efforts for AOL through third party media outlines to promote agreed upon properties.
  • It covers the previously promised help for AOL and Time Warner to understand how to be indexed by Google better: "We have agreed to assist AOL and Time Warner in understanding our published and/or publicly available tools for improving the accessibility of a web site?s content to Google?s web crawlers."
  • Google Talk users will have to register their names with AIM in order to interact with AIM clients.

ClickZ Live New York What's New for 2015?
You spoke, we listened! ClickZ Live New York (Mar 30-Apr 1) is back with a brand new streamlined agenda. Don't miss the latest digital marketing tips, tricks and tools that will make you re-think your strategy and revolutionize your marketing campaigns. Super Saver Rates are available now. Register today!

Recommend this story

comments powered by Disqus