US Internet giants Google and America Online (AOL) ironed out the final details of an expanded alliance, clearing the way for Google to invest $1 billion in AOL, its biggest advertising partner, an Associated Press report said.
The two firms earlier signed a definitive agreement to seal a deal originally announced in December, according to Securities and Exchange Commission documents filed Google, the report said.
Google would assume a 5% stake in Time Warner's AOL in exchange for a $1-billion investment expected to be made some time during the three months ending in June, the report said.
AOL would also get a $300-million credit to advertise its products and services through Google's vast advertising network. Google, in turn, was depending on AOL to sell more graphical ads to help diversify its search engine beyond the text-based ads that generated most of the company's profits, the report said.