AOL to Buy Online Ad Outfit Quigo

It's the last big acquisition in new restructuring plan
By Jonas Oransky,  Newser Staff
Posted Nov 7, 2007 4:15 PM CST
Randy Falco, AOL's Chairman and CEO, in a file photo from April. (AP Photo/Seth Wenig)   (Associated Press)
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(Newser) – AOL will purchase online advertiser Quigo, its final acquisition on a major restructuring agenda. The Time Warner unit has had poor ad growth recently—13% this past quarter, down from 40% percent levels—and is seen as trying to stay competitive with Google and Yahoo. The purchase, reportedly valued at around $340 million, is the latest in a “buying frenzy,” Reuters reports—on the heel of Microsoft’s $6 billion buy of aQuantive.

With more than 500 publisher relationships, Quigo makes listings based on keywords. Unlike Google, however, the AdSonar product lets advertisers and publishers control ad placement. Those clamoring for Time Warner to spin off AOL feel bolstered by the parent company's revolving CEO door, but AOL’s top dog says T-W is showing new faith with the Quigo purchase.