Google to Invest $1 Billion for a 5% Stake in AOL

Google to Invest $1 Billion for a 5% Stake in AOL

Google Inc. (NASDAQ: GOOG) and America Online, Inc., a wholly owned subsidiary of Time Warner Inc. (NYSE: TWX), today announced that they are expanding their current strategic alliance. The agreement creates a global online advertising partnership, makes more of AOL’s industry-leading content available to Google users, and includes a $1 billion investment in AOL by Google. This strategic alliance expands on the original relationship between the two companies launched three years ago.

Time Warner Chairman and Chief Executive Officer Dick Parsons said: “We’re very pleased to build significantly on our special relationship with Google in a way that will meaningfully strengthen AOL’s position in the fast-growing online advertising business and help drive more advertisers to its Web properties. This agreement is key to fulfilling our commitment to realize the potential of AOL’s very large online audience. As digital technologies continue to drive industries together, the great value and opportunity inherent in Time Warner’s structure and array of premier businesses becomes increasingly clear. A critical piece of this strategic alliance will be our content, which we will be making more accessible to Google users.”

Google Chief Executive Officer Eric Schmidt said: “AOL is one of Google’s longest-standing partners, and we are thrilled to strengthen and expand our relationship. Today’s agreement leverages technologies from both companies to connect Google users worldwide to a wealth of new content. We’ve also created a simple way for AOL Marketplace advertisers to buy and place search-related advertising across the AOL network. This partnership is an important next step for our companies.”

Read the complete Press Release