Google Confirms $1Bn Stake in AOL

Online search engine Google has confirmed it will invest $1bn to take a 5% stake in Time Warner’s AOL unit as part of a major strategic alliance.

The deal, which follows intense negotiations between the two US internet giants, values the troubled AOL unit at $20bn. The global online advertising partnership will make more of AOL’s content available to Google users. The agreement shuts out software giant Microsoft from a rumoured AOL tie-up.

"We’re very pleased to build significantly on our special relationship with Google," said Time Warner chief executive Dick Parsons.

BBC