Google Inc. and America Online, Inc. are expanding their current strategic alliance, according to Time Warner, AOL's parent company.
The agreement creates a global online advertising partnership, makes more of AOL's industry-leading content available to Google users, and includes a US$1 billion investment in AOL by Google.
Under the strategic alliance, Google and AOL will continue providing search technology to AOL's network of Internet properties worldwide.
The agreement's broad range of new features for users and advertisers include creating an AOL Marketplace through white labeling of Google's advertising technology, thus enabling AOL to sell search advertising directly to advertisers on AOL-owned properties.
Part of the plan is also making AOL content more accessible to Google Web crawlers, and collaborating in video search and showcasing AOL's premium video service within Google Video.
Google Talk and AIM instant messaging users will be able communicate with each other, provided certain conditions are met.
Google will provide AOL marketing with credits for its Internet properties.
AOL and Google have also agreed to extend the term of their existing European relationship, and, subject to mutual agreement, they may extend the AOL Marketplace internationally. In addition, Google, AOL and Time Warner may choose to expand the new partnership to Time Warner's other advertising opportunities.
Google will invest US$1 billion for an effective 5% equity stake in America Online, Inc. Google will become the only shareholder in AOL other than Time Warner. Time Warner will retain management control and full strategic flexibility over AOL, while Google will have certain customary minority shareholder rights, including those associated with any future sale or public offering of AOL.