Time Warner buys Google's AOL stake

Buyback completed on July 8

NEW YORK -- Time Warner paid Google $283 million for the Internet bellwether's 5% stake in TW online arm AOL, according to a regulatory filing Monday.

The buyback of full control in AOL happened on July 8 in another step toward a separation of AOL expected later this year.

The new entity will be known as AOL Inc., but the filings didn't detail the timing or other specifics of the planned separation.

Google acquired its 5% stake in AOL for $1 billion in 2006, but this year it wrote down $726 million of that investment.

Google's investment three years ago meant AOL was essentially worth $20 billion at the time. With its sale of that stake back to AOL at a greatly reduced price, the value of AOL could be said to have dropped to less than $6 billion.