More On AOL-MSN Talks: Centered Around Paid Search

WSJ reports some more details on AOL-MSN talks: the talks revolve around taking a stake in the TW’s America Online unit, as part of a broader discussion about the two companies working together.

The conversations have centered on whether AOL would switch to using Microsoft’s search engine…AOL currently uses Google (since 2002), and was Google’s single largest source of revenue last year.

The talks have also included discussions of combining the ad sales forces of AOL and MSN.

As WSJ says, under the current AOL-Google agreement, Google pays AOL a portion of the ad revenues generated from searches by AOL users. In 2004, AOL received about $300 million in revenues from the arrangement. Google says in filings with the SEC that AOL accounted for 12% of revenues in 2004. No other customer accounted for more than 10%, it said.

Related:

Speculation Frenzy: MSN-AOL In Co-op Talks, Not Buyout?

Report: Microsoft Talking To TW About Combining AOL And MSN

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