Corporate Strategy Case Study

AOL : The Prize in the Battle of Portals

OR

Abstract:
In October 2005, the battle of the portals is heating up with three internet companies – Google, Microsoft and Yahoo! (Yahoo) trying to strike some sort of a deal with America Online (AOL)--the fourth player to become the primary gateway to the internet. The struggle will decide which company is the world’s leading internet portal--the site that most internet users rely on for everything, from searching the web to sending e-mails and catching up on the news. The case outlines how the deal is important to all the players, and what is at stake for them. AOL decides to enter into a deal with Google. The case also discusses the ramifications of the actual deal, the gains for both the parties, and how could it have been better for both of them.

Pedagogical Objectives:

• The case outlines why the deal is important to all the players, and what is at stake for them
• AOL decides to enter into a deal with Google
• The case also discusses the ramifications of the actual deal, the gains for both the parties, and the means to increase the mutual benefits
• The case also discusses the businesses of the three players, their areas of interest and their growth prospects.

Keywords :  Mergers,Acquisitions,Alliances Case Study;AOL; Yahoo; Google; Comcast; Microsoft; MSN; acquisition; deal; primary gateway to internet; internet advertising; portal; web traffic