Google shares a 5 per cent stake in AOLAugust 11th, 2008 - 11:28 am ICT by Amrit Rashmisrisethi
Time Warner Inc’s AOL is worth less than the $1 billion, which the Google Inc’s shares a 5 percent stake, than the 1 billion the company paid in the year 2006.
“We believe our investment in AOL may be impaired,” Google said. It is known , in future Google will continue to review its investment and will also require the financial ups and downs.
In December 2005, a deal was announced and the particular year , the deal was closed. It was since , Google paid $1 billion in cash for a 5 percent for the Aol stake indirectly.
Now , Time Warner is thinking how to dispose AOL for the media focus because they also plan to spilt up AOL’s dial-up , by 2009 from the advertising business.
In the second quarter of sales advertising and also from the web search of “Google.com” which affected sites like Myspace.com and also Aol.com,and Google also generated $1.77 billion in cash. Google which had $1 billion investment and had $12.7 billion in cash on June 30.
It is estimated that Google gets $70 million to $80 million from AOL for the search advertisement services and also for the unwanted risk rival.