After getting FIPB’s approval of its investment plans, AOL is reworking on its India strategy to include acquisition of an Indian portal or an alliance as options to setting up a 100 per cent subsidiary.
AOL, which received FIPB approval a few months ago to bring in investments into India, has been talking to a slew of major Indian corporates and horizontal portals for a potential business alliance.
Potential AOL allies in India includes names like Reliance, Satyam Infoway, WiproNet. AOL’s acquisitive eye has also fallen on India’s leading Internet brand Rediff.com
Rediff, with its scrip quoting below $1 could be an attractive buy for AOL at a time when it has fallen below the red line on NASDAQ where it faces delisting. Then, there is also Satyam Infoway (Sify.com) for which a foreign partner will make a lot of sense.
According to Industry sources the partnership could either take the form of a JV or could actually involve AOL investing in an existing player’s Internet infrastructure.