Posts Tagged ‘AOL’

Mountain View, California – December 22, 2005 – Search engine Google Inc. and America Online, Inc. have entered an expanded strategic partnership which includes a $1 billion investment for a 5% stake in AOL
by Google and creates a global online advertising partnership.

Under the terms of the agreement, Google will make more of AOL’s industry-leading content available to Google users. The new alliance expands on the original relationship between the two companies launched
three years ago.

Time Warner Chairman and Chief Executive Officer Dick Parsons commented on the expanded relationship, ”We’re very pleased to build significantly on our special relationship with Google in a way that will meaningfully strengthen AOL’s position in the fast-growing online advertising business and help drive more advertisers to its web
properties. This agreement is key to fulfilling our commitment to realize the potential of AOL’s very large online audience. As digital technologies continue to drive industries together, the great value and
opportunity inherent in Time Warner’s structure and array of premier businesses becomes increasingly clear. A critical piece of this strategic alliance will be our content, which we will be making more accessible to Google users.”

Eric Schmidt, Google’s Chief Operating Officer added, ”AOL is one of Google’s longest-standing partners, and we are thrilled to strengthen and expand our relationship. Today’s agreement leverages technologies from both companies to connect Google users worldwide to a wealth of new content. We’ve 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 our companies.”

Under the new agreement, Google and AOL will continue providing search technology to AOL’s network of Internet properties worldwide. The agreement’s broad range of new features for users and advertisers include:

Creating an AOL Marketplace through

• white labeling of Google’s advertising technology – enabling AOL to sell
  search advertising directly to advertisers on AOL-owned properties;
  Expanding display advertising throughout the Google network; Making AOL
  content more accessible to Google Web crawlers; Collaborating in video
  search and showcasing AOL’s premium video service within Google Video;
  Enabling Google Talk and AIM instant messaging users to communicate with
  each other, provided certain conditions are met; and
• Providing AOL marketing credits
  for its Internet properties.

AOL and Google have also agreed to extend the term of their existing European relationship, and, subject to mutual agreement, they may extend the AOL Marketplace internationally. In addition, Google, AOL and Time Warner may choose to expand the new partnership to Time Warner’s other advertising opportunities.

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 customaryminority shareholder rights, including those associated with any future sale or public offering of AOL. Additional financial terms of the  agreement were not disclosed.

Mr. Schmidt continued, ”Our investment underscores our recognition of AOL as a valuable strategic asset and our desire both to contribute to and participate in its future success. We look forward to working with Dick Parsons and the management teams at Time Warner and AOL to take our already successful AOL relationship to even greater heights.”

Jonathan Miller, AOL’s Chairman and Chief Executive Officer said, ”AOL and Google have a very successful history working together, and this is an opportunity to take it to a new level that will benefit both companies and the customers we serve. We are excited about working with Google on the next generation of AOL products, while further expanding our presence on the Web. This is a great moment for AOL.”

To learn more about America Online, please visit: www.aol.com .

For further information on Google Inc., please visit: www.google.com .