Google sells AOL stake at $717 million loss

The search giant bought a 5 percent interest in AOL in 2005 for $1 billion

Google sold its stake in AOL at a US$717 million loss, according to a regulatory filing made on Monday.

Time Warner purchased Google's 5 percent share in AOL on July 8 for $283 million, AOL said in a filing with the U.S. Securities and Exchange Commission. Google bought the share of AOL in late 2005 for $1 billion.

The purchase paves the way for Time Warner to spin off AOL, a move it has said it plans to finally make by the end of this year. Time Warner has been struggling for years to rid itself of AOL, after merging with the company in 2001.

The combination of the companies didn't work out as planned. AOL in particular has struggled, failing to make up lost revenue from its shrinking Internet-access subscription business with new revenue from online ads.

Its transition to a business based on ad revenue has not kept up with the rest of the industry. For example, in 2008, U.S. online ad spending grew 11 percent, according to the Interactive Advertising Bureau, but AOL's online ad revenue dropped 6 percent.

Earlier this year Google told Time Warner that it wanted to sell its stake in AOL and wrote down the value of the investment by $726 million. At the time, Google said that AOL remained a valued partner.

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags AOLGoogle

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Nancy Gohring

IDG News Service

Most Popular Reviews

Follow Us

Best Deals on GoodGearGuide

Shopping.com

Latest News Articles

Resources

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Latest Jobs

Shopping.com

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?