Google Has Right to Sell AOL Stock in an IPO
From Associated Press
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 boom that they hope to fuel through their partnership.
The possible timeline for an initial public offering by AOL emerged Friday in a filing with the Securities and Exchange Commission.
Although Google will hold only a 5% stake in AOL, it will have the right to demand an IPO beginning in July 2008.
Time Warner has been under pressure from a group of shareholders led by hedge fund investor Carl Icahn to lift its stock, which has fallen 9% this year, continuing a prolonged slide.
