by CIO Staff

Google to Finish AOL Investment in Q2

News
Mar 17, 20062 mins
Consumer Electronics

On Thursday, search bigwig Google said it plans to complete its $1 billion investment in uber-Internet service provider America Online by the end of 2006’s second quarter, later than the two companies originally predicted, the Associated Press reports via Newsvine.

AOL first announced its plan to invest a 5 percent stake in the search engine company in December, according to the AP, and both companies said they expected the transaction to be completed by the end of March.

According to a Securities and Exchange Commission filing, Google now expects to make the investment sometime during the three months ending in June, the AP reports.

The filings didn’t provide a reason for the delay, but said the two companies still needed time to finalize the details of their new relationship, according to the AP.

Time Warner subsidiary AOL is already one of Google’s leading business partners, with advertisements delivered from Google’s site to AOL’s generating some $550 million, or 9 percent of the search company’s 2005 revenue, the AP reports.

The investment will also give AOL credit in the amount of $300 million to showcase its products and services via Google’s influential marketing network, according to the AP. In response, Google expects AOL to help it diversify its search engine by dispensing a larger number of graphical ads instead of the text-based ads that currently generate the majority of the search firm’s profits, the AP reports.

For related news coverage, read Court Likely to Rule Google Must Hand Over Data.

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