Google Acquires 5% of AOL

CNN is reporting that Google just acquired a 5% stake in AOL for $1 Billion, shutting Microsoft out of the deal.” Under this new agreement, among many other things, Google Talk will now interface with AOL’s instant messenger according to the announcement on Google’s site. From the announcement: “Google Chief Executive Officer Eric Schmidt said: ‘AOL is one of Google’s longest-standing partners, and we are thrilled to strengthen and expand our relationship. Today’s agreement leverages technologies from both companies to connect Google users worldwide to a wealth of new content.’

In addition, Google is giving AOL $300 Million credit to purchase adwords. Wow, I don’t really see how Google wins. Check out the posting at Slashdot.