fsad 444 Alloy

fsad 444 Alloy - Main Question Should Alloy take the $2...

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Main Question: Should Alloy take the $2 million deal with AOL? Why or why not? Alternative 1: Alloy may choose to take the deal with AOL. They may choose to do this for a variety of reason. First, AOL is Alloy’s most important source of traffic to their website. More than one third of Alloy’s customers use AOL as their Internet service provider. It can be assumed that by partnering with AOL, Alloy’s traffic to their website would increase tremendously, and lead to an increase in sales. Another advantage to this option would be that Alloy’s share price might increase because of the optimism over their deal with AOL. Diamond predicted that a headline deal with AOL could be worth about 10% on the stock price. The disadvantages to this would be that AOL was asking $2 million dollars a year for the rights. This money could be used elsewhere, such as print of TV advertising campaigns. Alternative 2:
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fsad 444 Alloy - Main Question Should Alloy take the $2...

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