Google investment in AOL could lead to 2008 IPO
Google Inc.’s $1 billion investment in America Online could lead to an IPO in 2008, giving the online search engine leader and AOL parent Time Warner Inc. an opportunity to capitalize on an Internet advertising boon that they hope to fuel through their partnership.
The possible timeline for an initial public offering by AOL emerged in a Friday filing with the Securities and Exchange Commission. The documents provided additional details about a deal announced earlier this week that extends the business ties that Google and AOL formed when they began working together in 2002.
Although Google will hold only a 5 percent stake in AOL, it retains the right to demand an IPO beginning in July 2008, according to the SEC documents. If Time Warner doesn’t want to pursue an IPO then, it could buy back Google’s stake based on a fair market appraisal, the filing said.