Sale of Google's stake values AOL at $5.7 billion

Time Warner purchased Google's 5 percent stake in AOL for $283 million earlier this month, paving the way for an AOL spin-off and valuing the company well below 2000-era levels.

The end result of Google's $1 billion investment in AOL in 2006? 28 cents on the dollar.

Time Warner, which is in the process of spinning out AOL as a separate company once again, confirmed that Google sold its 5 percent stake in AOL for $283 million on July 8, according to a filing with the U.S. Securities and Exchange Commission.

Both companies had signaled their intentions long ago regarding that stake: Google notified Time Warner in February that it was ready to make a move and wrote off more than $700 million of that investment in January, while Time Warner said it would buy back the stake in May when announcing plans to spin off AOL .

Still, the move closes a chapter in the relationship between Google and AOL. It also values the Time Warner unit at $5.7 billion, according to Reuters.

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About the author

    Tom Krazit writes about the ever-expanding world of Google, as the most prominent company on the Internet defends its search juggernaut while expanding into nearly anything it thinks possible. He has previously written about Apple, the traditional PC industry, and chip companies. E-mail Tom.

     

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