AOL, Google extend search pact
More AOL content coming to YouTube under new dealNEW YORK -- Online giants Google Inc. and AOL on Thursday unveiled a five-year renewal of a long-standing search alliance and said they are expanding it to include mobile search and online video site YouTube.
Under the partnership, Google will continue to provide search services to AOL's content network and properties in exchange for a revenue-sharing arrangement. Microsoft was also believed to have been in contention for the deal.
For AOL, one of the benefits is that Google agreed to feature AOL content on YouTube given that it has increasingly focused on content, and video content is a particular growth business. On CNBC Thursday morning, AOL chairman and CEO Tim Armstrong said more AOL on YouTube will be a key benefit for his firm. "Today is another important step in the turnaround of AOL," he said in a statement. He argued that "all aspects of our partnership will be improved by this deal."
Google CEO Eric Schmidt lauded AOL's strength in online content. "It's particularly exciting to see our relationship expand into video and mobile," he said. "These areas are now at the heart of users' online experiences and at the core of both of our businesses."