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AOL to Buy 2 Million Shares of Google
March 18, 2004
SAN FRANCISCO, March 18 (Reuters) - Internet service provider American Online has the right to buy about 1.9 million preferred shares of Google Inc. for around $22 million, under a 2002 deal with the world's No. 1 Web search engine, AOL parent Time Warner Inc. said in a recent filing.
America Online in June 2002 received the five-year warrant to buy the preferred stock of Google, which is expected to go public later this year.
Following exercise, America Online would have the option to convert the preferred stock into Google common stock. The stock would convert automatically if Google completes an initial public offering, Time Warner said in its annual report filed Monday.
It was not clear what the value of the stock would be, nor what percentage ownership in Google it would represent. An AOL spokesman declined to elaborate on the filing. A Google spokeswoman did not comment.