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    inue to share advertising revenue with AOL.

    The stakes couldn't have been much higher for both companies. AOL accounts for about 11% of Google'

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    It looked like Microsoft had a deal with AOL to replace Google as the AOL search engine of record and provider of online advertising services. This looked like a fantastic coup for Microsoft -- one that would make them a serious Google competitor on the search engine and online advertising front.

    But that deal fell apart last week and culminated in a phone call on December 16 in which AOL told Microsoft the deal was off.

    Google sweetened their offer and AOL went for it. Under the new deal, Google will pay $1 billion for 5% of AOL -- about twice the market value -- and will continue to share advertising revenue with AOL.

    The stakes couldn't have been much higher for both companies. AOL accounts for about 11% of Google's

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    ooked like a fantastic coup for Microsoft -- one that would make them a serious Google competitor on the search engine and online advertising front.

    But that deal fell apart last week and culminated in a phone call on December 16 in which AOL told Microsoft the deal was off.

    Google sweetened their offer and AOL went for it. Under the new deal, Google will pay $1 billion for 5% of AOL -- about twice the market value -- and will continue to share advertising revenue with AOL.

    The stakes couldn't have been much higher for both companies. AOL accounts for about 11% of Google'

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    /p>

    But that deal fell apart last week and culminated in a phone call on December 16 in which AOL told Microsoft the deal was off.

    Google sweetened their offer and AOL went for it. Under the new deal, Google will pay $1 billion for 5% of AOL -- about twice the market value -- and will continue to share advertising revenue with AOL.

    The stakes couldn't have been much higher for both companies. AOL accounts for about 11% of Google'

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    etened their offer and AOL went for it. Under the new deal, Google will pay $1 billion for 5% of AOL -- about twice the market value -- and will continue to share advertising revenue with AOL.

    The stakes couldn't have been much higher for both companies. AOL accounts for about 11% of Google'

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    inue to share advertising revenue with AOL.

    The stakes couldn't have been much higher for both companies. AOL accounts for about 11% of Google's revenue, and to have lost to Microsoft would have meant a significant shift in the search engine wars. Microsoft would have gained overnight credibility for both its search and advertising services.

    On the AOL side, this deal stems recent criticism that the company is floundering with nowhere to go. Not only does this represent a re-valuation of AOL, but bolsters its efforts to diversify its services and move towards being something other than just a glorified ISP. For instance, Google has committed to promoting AOL's services in sponsored links, including a valuable collection of o

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