Friday, December 16, 2005

Google to buy 5 Percent of AOL

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(image via nysocialdiary)

According to Reuters:

"Google Inc. is in exclusive talks to pay $1 billion for a 5 percent stake in Time Warner Inc.'s online unit AOL, a source familiar with the matter told Reuters on Friday.

"'Those talks include, among other things, a $1 billion investment for a 5 percent stake in AOL,' said the source.

"This confirmed an earlier report on The Wall Street Journal's Web site."

And, according to AP via Forbes:

"Time Warner Inc. is negotiating exclusively with Google Inc. to broaden a lucrative advertising partnership with Time Warner's America Online unit, abruptly ending negotiations early Friday with Microsoft Corp., officials close to the negotiations said. Shutting out Microsoft sets the stage for a high-profile agreement among two titans of the Internet. Among other terms of a deal expected to be announced as early as next week, Google will highlight Time Warner Web properties as sponsored links and AOL will continue to provide Google's search engine to its own subscribers.

"Officials described the negotiations on condition of anonymity, because no agreement has yet been formalized."

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