In a collaboration that promises to increase Internet video, advertising and electronic messaging, Google will invest $1 billion for a 5 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 video service within Google Video.
The deal, according to a CNET report, leaves Microsoft out after months of negotiations with Time Warner over AOL’s search business.