Friday, 13 Mar, 2009 Technology
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AOL to be Headed by Former Google Executive

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One of Google's executives is now chief executive of the company's rival AOL. The number one search engine's internet rival AOL replaced its current chairman and chief executive, Randy Falco, with a senior Google sales executive Tim Armstrong, who became available after the struggling Google shook up its top management.

It is worth mentioning that the New York-based AOL for several years attempted to achieve success in the web industry. After Armstrong's appointment the web company also got rid of its chief operating officer Ron Grant.

The chairman and chief executive of Time Warner, the parent company of the New York firm, Jeff Bewkes is happy with the appointment, saying in a statement that Tim Armstrong, who was responsible for Google's American operations, represents an ideal replacement for Randy Falco.

"At Google, Armstrong helped build one of the most successful media teams in the history of the internet. He's an advertising pioneer with a stellar reputation and a proven track record," stated Bewkes.

Despite the fact that Falco, who was appointed in November 2006, spent hundred of millions of dollars on acquiring a number of new businesses, including the social networking service Bebo, he was unable to deal with AOL's 50 percent decrease in revenues.

With Armstrong's appointment AOL also hopes to make certain changes in the web industry, especially due to the continuously increasing rumors about the fact that a number of internet companies such as Yahoo and the software giant Microsoft look forward to buy all or part of the New York-based company, informs The Guardian. According to an expert, Falco's replacement with a former Google executive could drag AOL further away from such acquirements. This is because the number one search engine has a 5 percent stake in AOL, which the Californian company purchased back in 2005 for $1 billion.

"Armstrong's likely to be Google-friendly. Of course, I'd expect Armstrong to act in AOL's best interests, not Google … but it certainly does give them a much closer connection to AOL than either Yahoo or Microsoft will have," said Danny Sullivan, editor of the SearchEngineLand website.

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