Comcast and Google are negotiating for part of AOL

Three Major Media Companies Discuss Business Deal

Comcast is the largest cable company in the United States.  Time Warner is the second largest cable company, and Google is the most used search engine around.  That makes these three companies some of the largest media companies in the U.S., and they are discussing the possibility of joining together in ownership of Time Warner/AOL’s Web portal. 

Nothing is set in stone at this point.  A lot of speculation and hesitation is occurring, and officials won’t make statements, leaving the public no choice but to speculate.  However, hearsay of this venture caused Time Warner’s stock to go up 10 cents following the discussion. 

AOL is Making a Switch

AOL has been pinned as the underdog in the past, especially following their merger with Time Warner because of their reliance on dial-up customers for profit and their loss of clientele recently.  However, they have decided to change their private business model into something that every Internet user can access.  Their revenue will no longer rely on dial-up customers, but on Internet advertising. 

Advantages of the Deal

If Comcast, Time Warner/AOL, and Google join together in the creation of one mega-Web portal, the possibilities are endless.  All three companies are interested in building up their Internet users.  AOL would benefit from the public advertising; Google would do well to join forces with cable operators and content programmers, while both Comcast and Google would benefit from AOL’s original online content.  The companies already influence one another’s profits.  For example, AOL already contributes 11 percent of Google’s total profits.  The deal seems to makes sense and would profit everyone involved.