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AOL Exercises Google Stock Option
By WebProNews
Staff Writer
Article Date: 2004-05-12
Internet service provider America Online exercised an option to buy 7.4 million shares of Google's preferred stock. As reported by WebProNews, AOL's purchase comes as part of a 2002 agreement between the two internet companies.
The agreement was made when Google agreed to provide search results and AdSense/AdWords ads for AOL. The deal allowed AOL to purchase $22 million worth of Google stock. AOL, in light of Google's IPO, has decided to exercise its option to buy.
The 7.4 million shares that AOL will own gives them an estimated 3% control of Google. It is also expected that AOL's shares will be Class B level stock. If you are familiar with the details of Google's IPO, Class B stockholders have more votes per share (10) than Class A owners, who have 1 vote per share.
According to PCPro.co.uk, AOL's $22 million deal could be worth $1.3 billion when Google's stock finally becomes available to the public.
One wonders if Time Warner is still eager to dump AOL now?
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