Media conglomerate Time Warner has purchased back Googles five per cent stake in ailing internet firm AOL for USD 283 million,a price much lower than what the search engine major paid for buying the shareholding in 2006.
Three years ago,Google snapped up the five per cent stake in AOL for USD 1 billion.
On July 8,2009,Time Warner repurchased Googles five per cent interest in us for USD 283 million,which included a payment in respect of Googles pro rata share of cash distributions to Time Warner by AOL attributable to the period of Googles investment in us, AOL said in a regulatory filing yesterday.
Time Warner has bought back the stake as part of its efforts to spin off AOL into a separate entity from itself.
Following the buy back of the five per cent shareholding,AOL has become a 100 per cent subsidiary of Time Warner.
Going by the filing,the alliance with Google has been beneficial for AOL and has generated good revenues over a period of time. The revenues associated with the Google relationship stood at USD 677.9 million for the year ended December 31,2008.
During the same period,AOLs total revenues touched USD 4.17 billion.
In May this year,Time Warner unveiled plans for complete legal and structural separation of AOL from the group. Once the spin off is complete,AOL would be an independent,publicly-traded company.