Google, AOL Finalize Billion Dollar Deal

The investment agreement that kept Google's place as AOL's search and advertising partner has been hammered out to the satisfaction of both sides. Google (NASD:TWX) finally found the path clear to completing the blockbuster investment announced by the companies in December 2005, AP MSFT) both battled for the right to partner with AOL. Google's loss in the deal seemed a foregone conclusion until mid-December, when AOL decided to stick with Google instead of switching to Microsoft. Along with the $1 billion investment in AOL in exchange for a 5 percent stake in the business, AOL receives a $300 million credit with Google. That credit permits AOL to purchase advertising on Google and have it placed throughout Google's extensive network of sites, as well as in the search results generated at Google.com. In an interesting sidebar to the story, both Time Warner chairman Richard Parsons and Goldman Sachs (NYSE:NYT) issuance of 5.3 million shares of stock. Other Internet Financial News saw eBay (NASD Also, eBay received added good news from the US Patent Office concerning the patent in question, #5,845,265, issued to MercExchange, and acknowledged that in its statement: eBay learned on Monday, March 27 that the U.S. Patent and Trademark Office confirmed its earlier decision that MercExchange's U.S. Patent No. 5,845,265 is obvious and should never have issued as a patent. This ruling is significant since it responds to--and dismisses--the arguments MercExchange raised in its 100-page response to the Patent Office's previous rejection of all of MercExchange's claims. "eBay commends the Patent Office for its willingness to reexamine this patent, and is impressed with the thorough analysis contained in this second office action," said Jay Monahan, eBay's Deputy General Counsel of Intellectual Property. In Europe, Microsoft continued to fight the European Commission's antitrust regulators over Microsoft's fulfillment of regulator requirements. ABCNews In response, Microsoft senior VP and general counsel Brad Smith said to reporters, "We have complied beyond the requirements of the Commission's decision. Microsoft is willing to do more ... Daily fines are not the solution." Add to document.write("Del.icio.us") | Yahoo! My Web Drag this to your Bookmarks. David Utter is a staff writer for Murdok covering technology and business.