You have to applaud AOL
"Google's been a great partner," he said during yesterday's Citi's Media & Telecommunications Conference, as retold by Silicon Alley Insider. "They're obviously going to get first dibs. Microsoft and other people are very interesting partners as well."
Of course Google is going to get dibs. Armstrong came from Google, so he knows full well that no company can monetize paid search the way Big G can. It has the inventory breadth and contextual know-how to serve up the most relevant high-paying ads. Microsoft's
However, simply by introducing Microsoft into the equation, Armstrong is giving Google a heads-up that he's not going to renew blindly.
It's true that AOL is in a lousy position. Revenue and operating profits fell by 23% and 50%, respectively, at AOL in its latest quarter. Now that Time Warner
A lot has changed since Google paid $1 billion for a 5% stake in AOL four years ago. Google is bigger and more relevant. AOL has gone the other way. However, AOL is still a traffic magnet in cyberspace, and that's more important than you may think in the eyes of Google.
Microsoft already has marketing distribution deals with Yahoo!
Armstrong is saying the right thing, tactically speaking -- but everyone knows that Google and AOL are right for one another.
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Longtime Fool contributor Rick Munarriz has been an AOL subscriber since the early 1990s and is frustrated that so many services have been axed. He owns no shares in any of the stocks in this story and is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.