Comments on: Google’s AOL Stake Down By Half? http://gigaom.com/2008/04/10/googles-aol-stake-down-by-a-half/ The Business of Technology Sun, 23 Nov 2008 09:51:06 +0000 http://wordpress.org/?v=MU hourly 1 By: Google Bemoans AOL Investment - GigaOM http://gigaom.com/2008/04/10/googles-aol-stake-down-by-a-half/#comment-892649 Google Bemoans AOL Investment - GigaOM Fri, 08 Aug 2008 02:49:24 +0000 http://gigaom.com/2008/04/10/googles-aol-stake-down-by-a-half/#comment-892649 [...] Back in April, I had pointed out that Google’s investment in AOL was worth $500 million, mostly because there were rumors that AOL was being valued at $10 billion as it was being prepped for a sale. At the time Google made an investment in AOL, its estimated value (as per deal terms) was $20 billion. Some people believe that AOL is worth less than $10 billion these days. [...] [...] Back in April, I had pointed out that Google’s investment in AOL was worth $500 million, mostly because there were rumors that AOL was being valued at $10 billion as it was being prepped for a sale. At the time Google made an investment in AOL, its estimated value (as per deal terms) was $20 billion. Some people believe that AOL is worth less than $10 billion these days. [...]

]]> By: Microsoft To Yahoo: Take a Hike! - GigaOM http://gigaom.com/2008/04/10/googles-aol-stake-down-by-a-half/#comment-876705 Microsoft To Yahoo: Take a Hike! - GigaOM Sun, 04 May 2008 00:45:45 +0000 http://gigaom.com/2008/04/10/googles-aol-stake-down-by-a-half/#comment-876705 [...] Yahoo has no real suitors and its viable options as a standalone company are limited. * By choosing to sleep with [...] [...] Yahoo has no real suitors and its viable options as a standalone company are limited. * By choosing to sleep with [...]

]]> By: Om Malik http://gigaom.com/2008/04/10/googles-aol-stake-down-by-a-half/#comment-870618 Om Malik Thu, 10 Apr 2008 22:43:25 +0000 http://gigaom.com/2008/04/10/googles-aol-stake-down-by-a-half/#comment-870618 <p>@ Sony. Yes, and I wonder how that goes down with the FTC/DoJ anti-trust officials.</p> @ Sony. Yes, and I wonder how that goes down with the FTC/DoJ anti-trust officials.

]]> By: sony http://gigaom.com/2008/04/10/googles-aol-stake-down-by-a-half/#comment-870601 sony Thu, 10 Apr 2008 20:37:38 +0000 http://gigaom.com/2008/04/10/googles-aol-stake-down-by-a-half/#comment-870601 <p>in other words, if AOL manages to buy yahoo, Google will own some of Yahoo.</p> in other words, if AOL manages to buy yahoo, Google will own some of Yahoo.

]]> By: Alex Goldman http://gigaom.com/2008/04/10/googles-aol-stake-down-by-a-half/#comment-870574 Alex Goldman Thu, 10 Apr 2008 17:46:53 +0000 http://gigaom.com/2008/04/10/googles-aol-stake-down-by-a-half/#comment-870574 <p>Re: Loser dialup business.</p> <p>Yes, the business is losing close to 200,000 subs per month, but I know of many outfits that would like to buy part or all of this base.</p> <p>Dialup itself is profitable. One problem, of course, is that this user base is afflicted with AOHell, a popular nickname for AOL software because it appears to be designed to prevent users from leaving.</p> <p>Nevertheless, some ISPs have become skilled at making the switch, as have services like TrueSwitch.</p> <p>The dialup base would be valued at # of subscribers at a certain date <em>after</em> purchase. Generally, at less than 1x annual revenue.</p> <p>If dialup ARPU is $15, and AOL has 8,000,000 to sell, that's $90 x 8 million = $720 million.</p> <p>It's not many billions, but it's also not spare change.</p> Re: Loser dialup business.

Yes, the business is losing close to 200,000 subs per month, but I know of many outfits that would like to buy part or all of this base.

Dialup itself is profitable. One problem, of course, is that this user base is afflicted with AOHell, a popular nickname for AOL software because it appears to be designed to prevent users from leaving.

Nevertheless, some ISPs have become skilled at making the switch, as have services like TrueSwitch.

The dialup base would be valued at # of subscribers at a certain date after purchase. Generally, at less than 1x annual revenue.

If dialup ARPU is $15, and AOL has 8,000,000 to sell, that’s $90 x 8 million = $720 million.

It’s not many billions, but it’s also not spare change.

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