12/25/2005

Google has right to sell its AOL stake by ‘08

Filed under: — By Aviran Mordo @ 7:26 am

Google will have the right to sell its new 5 percent stake in America Online as soon as July 1, 2008, according to regulatory filings by both Google and Time Warner, AOL’s parent.

On Tuesday, the companies announced that Google would buy the stake in AOL for $1 billion, saying the move represented a vote of confidence in AOL’s plans to transform itself from a shrinking provider of dial-up Internet access into a series of advertising-supported Web sites.

Friday’s filings say that starting two and a half years into the five-year agreement, Google will have the right to force Time Warner to register its shares in AOL with the Securities and Exchange Commission. This would allow Google to sell the shares on the public market. Time Warner has the option to buy the shares back for cash or Time Warner shares at an appraised value.

Source: News.com

 

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