America Online acquires Xdrive

In a season full of acquisition news, the latest one comes from the American Internet Giant AOL (America Online). The world’s largest online company has announced plans to acquire the online storage and backup company Xdrive for an undisclosed sum. This is the first such acquisition for the online branch of the media conglomerate Time Warner Inc. which is looking forward to the official debut of its free Internet site, AOL.com.

Market analysts believe that it is very crucial for the parent company that AOL succeeds in growing on the Internet through its ISP services and online advertising. It puts a lot of effect on its corporate parent’s financial standing on Wall Street. Time Warner has loosened its purses for the company to let AOL make strategic purchases as per internal sources.

The company is competing with giants like Google, Yahoo!, and MSN to make its market on the online web user. The fields include Search Engines, Online Advertisement, and providing a one-stop web portal to the end user enabling it to access a variety of services on a single platform. Its new acquisition Xdrive lets users store and back up computer files, music, pictures, and videos on their computer servers, accessible to any Internet-connected computer.

It would help AOL provide the crucial service to the user letting them store their files on the net making them available for download anywhere in the world connected through the Internet. Yahoo! has a similar facility in Briefcase and they would be trying to beat their services.