12.27.2005 02:35 PM
Originally featured on BroadcastEngineering.com
Google, Time Warner sign $1 billion deal to enhance video at AOL

Google plans to invest $1 billion for a five percent stake in Time Warner’s America Online (AOL) service.

Outside of Time Warner, Google will become the only other shareholder in AOL. The deal establishes a partnership that will allow AOL to sell a wide array of advertising, including video, across Google’s network.

Google and AOL will collaborate on online video search and showcase AOL’s premium video service within Google Video. The deal leaves Microsoft out after months of negotiations with Time Warner over AOL’s search business. Microsoft was on the verge of striking a deal before Google was selected last week.

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