Google formalizes 5% AOL stake

Posted Mar 30th 2006 6:32AM by Sarah Gilbert
Filed under: SEC Filings, Deals, Google (GOOG), Time Warner (TWX)

Google snapped up a bite of AOL - a 5% bite, to be exact - for $1 billion in cash, according to an SEC filing. The move wasn't a surprise, as it had been announced previously. The deal is essentially one big ad swap and is thought by many industry wags to be a defensive growl in the general direction of Microsoft, who'd been making moves toward AOL's attractive clickers.

Google will expect AOL to sell more of those pricey and pretty graphical ads; whereas AOL is receiving a $300 credit to advertise its products and services through Google.

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