Time Warner has paid $283 million for Google’s five percent stake in AOL. According to a US regulatory filing, Time wants to spin off AOL by the end of the year. It bought back Google’s stake for $283 million which means that the entire operation is worth $5.7 billion.
In comparison to what Google paid for its stake, it looks like Time Warner is getting a bargain. Google announced that it lost about $726 million on the deal. Google bought its five percent stake in AOL in December 2005 as part of a five-year advertising partnership between the two companies.
The filing to the Securities Commission was a government requirement as part of AOL’s long-expected separation from Time Warner. AOL Chief Executive Tim Armstrong told Reuters last week the company was going to get into Web advertising.
In its registration statement, AOL said that it expects to incur up to about $90 million of additional restructuring charges in the last nine months of this year.