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Merging Two Great Internet Firms

With more and more people using the internet on a global scale it is becoming very important for big name companies to group together. This will ensure that they remain the top companies in the future. And who are the biggest names in the online industry, Google and AOL of course. Google Inc., and America Online, Inc., a wholly owned subsidiary of Time Warner Inc., today announced that they are expanding their current strategic alliance. The agreement creates a global online advertising partnership, makes more of AOL`s industry-leading content available to Google users, and includes a $1 billion investment in AOL by Google. This strategic alliance expands on the original relationship between the two companies launched three years ago.

Google Chief Executive Officer Eric Schmidt said that AOL is one of Google`s longest-standing partners, and that they are thrilled to strengthen and expand their relationship. Today`s agreement leverages technologies from both companies to connect Google users worldwide to a wealth of new content. They have also created a simple way for AOL Marketplace advertisers to buy and place search-related advertising across the AOL network. This partnership is an important next step for both companies.

Google will invest $1 billion for an effective 5% equity stake in America Online, Inc., allowing the company to participate in AOL`s future success. Google will become the only shareholder in AOL other than Time Warner. Time Warner will retain management control and full strategic flexibility over AOL, while Google will have certain customary minority shareholder rights, including those associated with any future sale or public offering of AOL. Additional financial terms of the agreement were not disclosed.