AOL in Talks with Microsoft to Acquire Its Display Ad Business

AOL in Talks with Microsoft to Acquire Its Display Ad Business

On Monday, AOL declared a portion of the value, while announcing a deal with Microsoft. At the point when the approval for Verizon to acquire AOL was declared a month ago, officials from both companies said that AOL was a winsome acquisition due to its promoting technology.

Under the agreement, AOL will dominate management and sales department of mobile, display ads, and video marketing, which appears on Skype, Xbox, and other Microsoft products in the United States, Japan, Brazil, Canada, including five European nations. The move takes Microsoft generally out of the display ad business, while giving AOL an access to a portion of the web's most popular destinations.

In turn, Microsoft's search engine - Bing will power search results, and search advertising on AOL sites. The plan could lift Bing, long a second fiddle to Google that is being uprooted as the web crawler of choice on AOL sites.

Rik van der Kooi, corporate vice president at Microsoft said that for them, it’s another part of validation for how far they’ve taken Bing in six years.

The new arrangement is the latest of several deals by Microsoft to concentrate on its core products, an effort pushed by Microsoft’s CEO Satya Nadella. A week ago, Nadella announced a new mission statement for Microsoft: Empower each individual and each association on the planet to achieve more.

As a major aspect of the deal, AOL said that it will stretch out job offers to around 1,200 Microsoft workers in marketing, sales, engineering and other sectors. Both the companies asserted that there would be no employment cuts because of the deal.

While display advertising is a tiny slice of Microsoft's revenue; it is fundamental to AOL that will obtain access to Microsoft's youngest and most sought-after users.

The companies commented that both of them will have an equal partnership on revenue earnings from ads sold on each other’s products, as per a revenue-sharing arrangement; the terms of which have not been revealed. The consent will last for 10 years.

Microsoft, at 40 years of age, and AOL, at 32, are strong players in Internet market, and keep on changing their online roles in a period, when ad dollars are being eaten up by Google and, the social media hype - Facebook. However, regardless they have some popular digital destinations, incorporating The Huffington Post news site for AOL, and the MSN portal for Microsoft.

Christy Gren

Christy Gren is an Industry Specialist Reporter at Industry Leaders Magazine; she enjoys writing about Unicorns, Silicon Valley, Startups, and Business leaders and innovators. Her articles provide an insight about the Power Players in the field of Technology, Auto, Manufacturing, and F&B. Follow Christy Gren on Twitter, Facebook & Google.

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