Time Warner Inc. (NYSE: TWX) reaches an interesting milestone this morning. The terms of its paid search advertising deal with Google Inc. (NASDAQ: GOOG), give the search giant the right to require AOL to register Google's 5% equity interest for sale in an initial public offering as of July 1, 2008.

It isn't a forced IPO of the unit -- or at least it doesn't have to be. Time Warner has the right to purchase Google's equity interest for cash or shares of Time Warner common stock based on the appraised fair market value of the equity interest in lieu of conducting an initial public offering.

FULL DETAILS can be seen in this filing for the terms and exceptions.

It is hard to know what Google will do, but I think Google will likely want to keep the AOL stake. If not, it is pretty hard to imagine Time Warner chief Jeff Bewkes allowing 5% of AOL to go public (in this lousy market) or be sold to someone that the company wasn't fully on board with. It seems he'd have little choice but to buy back the equity interest.

Win or lose, after two years time's finally up.