Google, Time Warner sign $1 billion deal to enhance video at AOL

In a collaboration that promises to increase Internet video, advertising and electronic messaging, Google will invest $1 billion for a 5 percent stake in Time Warner’s America Online (AOL) service.

Outside of Time Warner, Google will become the only other shareholder in AOL. The deal establishes a partnership that will allow AOL to sell a wide array of advertising, including video, across Google’s network.

Google and AOL will collaborate on online video search and showcase AOL’s video service within Google Video.

The deal, according to a CNET report, leaves Microsoft out after months of negotiations with Time Warner over AOL’s search business.

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