Menu
Google sells AOL stake at US$717 million loss

Google sells AOL stake at US$717 million loss

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 US 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, US 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.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags GoogleAOLinternational news

Events

Featured

Slideshows

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

This exclusive Reseller News Exchange event in Auckland explored the challenges facing the partner community on the cloud security frontier, as well as market trends, customer priorities and how the channel can capitalise on the opportunities available. In association with Arrow, Bitdefender, Exclusive Networks, Fortinet and Palo Alto Networks. Photos by Gino Demeer.

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security
Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomed 2019 inductees - Leanne Buer, Ross Jenkins and Terry Dunn - to the fourth running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing face of the IT channel ecosystem in New Zealand and what it means to be a Reseller News Hall of Fame inductee. Photos by Gino Demeer.

Reseller News welcomes industry figures at 2020 Hall of Fame lunch
Show Comments