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
- 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
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.
The Original Search Marketing Event is Back!
SES Denver (Oct 16) offers an intense day of learning all the critical aspects of search engine optimization (SEO) and paid search advertising (PPC). The mission of SES remains the same as it did from the start - to help you master being found on search engines. Early Bird rates available through Sept 12. Register today!