Google investment in AOL could lead to 2008 IPO

SAN FRANCISCO (AP) _ Dulles-based America Online's billion dollar investment from Google could lead to an initial public offering by 2008. <br/><br/>Word of the possible IPO was revealed yesterday

Tuesday, December 27th 2005, 10:59 am

By: News On 6

SAN FRANCISCO (AP) _ Dulles-based America Online's billion dollar investment from Google could lead to an initial public offering by 2008.

Word of the possible IPO was revealed yesterday in a filing with the Securities and Exchange Commission. The documents provide more details on the expanding business ties between Google and AOL.

While Google will only hold a five percent stake in AOL, it has the right to demand an IPO beginning in July 2008.

AOL parent Time Warner chairman Dick Parsons says the alliance is the best way to increase AOL's value. Google will depend on AOL to sell more graphical ads to diversify the text-based ads on the search engine.

The two companies are also making their instant messaging services compatible next year.

Google has had a golden touch since its own IPO in 2004. Its market value increased from about 23 billion dollars at the time to about 125 billion today.