GoogOL?
Other than maybe Ford, I can think of few companies less suited to be part of Google than AOL. Their mindset, corporate culture, profit models, relationship with their employees, treatment of their users, extension of their APIs, and view of the role of their business seem very much at odds.
A corporate culture Clash ot the Titans.
The fact that AOL is Google's biggest customer is more of a "Wha?" than a reason for purchase. You generally buy your suppliers, not your customers. Buying your own AR doesn't make a lot of sense. Loss of 11% of your revenue shouldn't be worth $1 Billion for 5% of a flailing, dieing giant.
I have been part of several companies and organizations that started to grow, started to buy things, and then nearly folded because of bad mergers or radical changes to their corporate culture. I was part of a company once that was growing nicely, steadily - with focus. We were a consulting engineering company. Our owner decided he wanted a kingdom and started buying all sorts of consulting companies simply because they were profitable. Most of them ended up whithering and dying in our company because they didn't meet our business model.
That has an incredibly negative impact on everything we had been doing right. Cash that would have gone for bonuses - went to prop up the bad purchases.
Google, the hearalded Web 2.0 company, has gone out and purchased the company that tried to stop innovation before Web 1.0. AOL created the largest gated community on the internet and paired that with dumbed down proprietary browsers that stymied growth and plagued customer support for many companies.
Whether they are doing this to stop Microsoft from gaining AOL market share as some information suggests or not, at best this will end up a product that Google can purchase and kill off. That, however, is not consistent with Google's history. My guess is that they'll take the AOL pig, put some Google lipstick on it and try to teach it to dance.
Or, they'll say that their 5% stake in AOL is chump change, write it off as the cost of doing business and not try to save them at all.
Good luck, Google.
Late note: Click on the links below or search technorati for Google AOL. For getting people to talk about them, Google wins big time. Everyone is talking about this...
Technorati Tags: Google AOL AOL Google GoogOL Web 2.0
(Photo from Morguefile, Jay Malpass)