AOL extends search deal with Google

As per the media reports, well known media and internet services firm AOL (US) has extended its search pact with Google for 5 more years. This renewed deal which came in existence in the year 2006 was slated to expire in December.

Tim Armstrong (CEO, AOL) said, “We decided to extend our partnership with Google to facilitate AOL users with advanced search experience.” With this move, mobile search and online video content would also be covered under the services gamut.
On the other hand, Eric Schmidt (CEO, Google) said, “This agreement combines Google’s expertise in search and advertising with AOL’s strength in online content.”
Last year, AOL’s advertising revenue from its deal with Google was $556.7 million, about one-third of AOL’s total advertising revenue. AOL reported a massive second quarter loss last month on the back of a plunge in advertising sales and a one-time goodwill impairment charge related to its sale of social networking site Bebo.
Google secured the deal by buying 5 percent stake in AOL for $1 billion in 2002. It also gave AOL a $300 million credit for use its ad platform. The new deal will allow AOL to distribute its video content on Google’s YouTube. The firm is also working with Google to develop an AOL mobile search product.