As part of the agreement Google will power search across AOL’s networks, will provide AOL with ad formats, and will power mobile search. And AOL and YouTube have agreed to bring AOL’s video content to YouTube.

It’s a big win for Google, since Microsoft’s Bing was clearly after the deal as well. But Armstrong said in February that “distribution is almost as important to us as money, we will look for distribution as much as money in the deal.” Google sends massive traffic to AOL sites, which could have made it a more attractive partner than Bing. Of course, Bing isn’t lacking in its own deals-the search engine now counts Yahoo as a partner.

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Authors: Leena Rao

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