Google loses out on AOL stake

Google has taken a big hit from its $1 billion (£509.6 million) investment in Time Warner’s internet engine AOL. Google bought the 5% stake in AOL, its largest ad partner, in 2006, but the shareholding has provably halved in value since then. AOL has lost eight million subscribers in the past three years, leaving it with 9.3 million. “We believe our investment in AOL may be impaired.” – Google admitted. Time Warner said this week thatit is readying AOL for a spin-off so it can returnits focus to core media businesses. the company has struggled under the burden of AOL since the 2001 merger, which was hailed as the “Deal of the Century” but quickly went sour.

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