02 September 2010 | Author: J. Morton News Editor

AOL, Google to team up for five more years

As AOL continues to rejig its strategies and corporate structure - which has already facilitated cutting the cord with social networking dud Bebo - it's signed on for another tour with search seraph Google, the far-and-away market leader.

The deal is of great importance to AOL, as one of its last vestiges of profitability falls within ad sales, and the ISP and web portal owed some $209 million in revenue to its partnership with Mountain View.

Though neither AOL nor Google disclosed financial agreements between the two companies, it has been revealed that the new terms will include bringing AOL to the mobile search market, which has been exploding in popularity since the advent of smartphone technology.

"Today is another important step in the turnaround of AOL," said CEO Tim Armstrong, who's been in charge of reversing the fortunes of the web outfit, once synonymous with the internet some 15 years ago.

"AOL users will be getting a better search and search ads experience from the best search company in the world - Google," Armstrong said.

"After nearly a decade-long partnership in search, we're looking forward to expanding our global relationship to mobile search and YouTube. All aspects of our partnership will be improved by this deal."

AOL's deal rolls out their ad services to YouTube, the number one video-sharing website, where profits on display ads will be split with Google, who's also the parent company of the site specialising in piano-playing cats and other internet memes.

"We're excited to deepen our partnership. This agreement combines Google's expertise in search and advertising with AOL's strength in online content," said Eric Schmidt, CEO of Google. "It's particularly exciting to see our relationship expand into video and mobile. These areas are now at the heart of users' online experiences and at the core of both of our businesses."

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