AOL and Google closing a deal

Much has been said about the possible talks between AOL and Google to strenghthen the relationship between the companies. Today, the media started reporting more details of the possible deal. According to bbc, Google would pay $1 billion for 5% of the company.

In the last month, the discussion about the fate of AOL has involved not only Google, but also Microsoft, which is desperately trying to find some outlet for their search services. It seems, however, that the goal of AOL was only to improve its position in the deal, since now they are being seem as the company that is disputed by two giants.

All in all, this is good news for Google. Having more access to AOL means a large user base. They can also have a more direct role in the online services offered by AOL, such as email and IM, and use this to improve Google's position against competitors.