Google acquires 5% stake in AOL

Google today announced its 5 % acquisition in AOL. It has finalized its plans for a partnership with AOL, A Time Warner Group Company. The deal is said to be worth around $1 Billion.

In a statement to the U.S Securities and Exchange Commission, Google made acknowledged the agreement. The deal was finalized on Friday, 24th March 2006. It has a series of commercial agreements between the two firms. The investment would be completed in the second quarter of the current financial year.

AOL was earlier toying with the idea of ending its partnership with Google in advertising and technology. AOL was looking for better deals from Google’s competitors like MSN. It was recently decided to continue with the association Google for another five years. AOL uses Google’s search engine for its web search service. AOL also decided to continue with the paid search ads of Google that its sells to its advertisers. Google pays AOL a commission for such ads.

The highlight of the current deal between Google and AOL is the 5% stake that Google has acquired in Google. Other important aspects of the agreement include Google’s plans to tap the market the graphical online ads market that has good potential with the help of AOL.

Google has also made evident, in earlier declarations to the SEC, its plans asking the various companies to link their instant messaging services and AOL for assistance in video search service.