14 DAY TRIAL // AOL has just spun off from Time Warner but the hard times are just beginning at the company. The plan is to focus on content and a couple of core services and get rid of everything else. Rumors started about a month ago that it was looking to sell ICQ, the company's 'other' instant messenger, and now the names of several potential suitors have come up. Russian tech company Digital Sky Technologies (DST) is said to be in talks with AOL and Google is apparently interested as well.
DST is one of the biggest online players in Russia and the acquisition would bolster its position. The company owns Mail.ru, the most popular site in the country, VKontakte the biggest social network in Russia and several other big ventures. It is best known to the outside world for its investment in Facebook. DST bought a small stake in the world's largest social network for $200 million and acquired an additional $100 million-worth of shares from Facebook employees or investors.
ICQ isn't very popular in the US, where AOL's instant messenger AIM is much bigger, or in the rest of the world for that matter, but it has several countries where it is very strong. It is the number one IM in Germany, where it has 12.6 million users and in Russia as well, with 8.4 million unique visitors, which would explain why DST is interested. It also explains why Google wants in as the company has been struggling to make inroads in the country. DST is apparently willing to pay somewhere between $200 million and $300 million.
AOL is going through a painful restructuring process and has just recently separated from Time Warner. Apparently, it held off from any sales until the spin off was finalized, but now it's looking to get rid of dead weight as soon as possible. AOL acquired ICQ in 1998 for $287 million plus earnouts which amounted to $120 million.