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Summary:

[qi:011] In a SEC filing, Google acknowledged that it might come out on the losing side of its $1 billion investment in AOL. Based on our review, we believe our investment in AOL may be impaired….. We will continue to review this investment for impairment in […]

[qi:011] In a SEC filing, Google acknowledged that it might come out on the losing side of its $1 billion investment in AOL.

Based on our review, we believe our investment in AOL may be impaired….. We will continue to review this investment for impairment in the future. There can be no assurance that impairment charges will not be required in the future, and any such amounts may be material to our Consolidated Statements of Income.

Back in April, I had pointed out that Google’s investment in AOL was worth $500 million, mostly because there were rumors that AOL was being valued at $10 billion as it was being prepped for a sale.  At the time Google made an investment in AOL, its estimated value (as per deal terms) was $20 billion. Some people believe that AOL is worth less than $10 billion these days.

Apparently buying Bebo for an outrageous sum hasn’t helped prop-up the company valuation, as Time Warner gets set to bust it up. Maybe they need to hire Brett Favre as a spokesperson to get people jazzed up! As for Google – too bad they have to take the lumps. Live by the sword, die by the sword.

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  1. Google admits that $1 Billion investment in AOL may be a ‘LOSS’ | Startup Meme Friday, August 8, 2008

    [...] Google for the first time has acknowledged that it may face a loss on 5% stake in AOL. The search engine giant thinks that its investment of $1 Billion in AOL is not doing any good. The company in its most recent quarterly financial filing with the U.S. Securities and Exchange Commission, said: [...]

  2. Google reconoce pérdidas: el fin de la era de los portales » El Blog de Enrique Dans Friday, August 8, 2008

    [...] Google reconoce una pérdida contable vinculada a la inversión de mil millones de dólares que hizo en 2005 en AOL, y otorga un valor de menos de la mitad a esa compañía que Time Warner está loca por colocar a quien sea. La asunción de pérdidas de Google es un elemento más que certifica el fin de “la era de los portales”, esos monstruos abigarrados de finales de los noventa que intentaban retener al usuario proporcionándole la mayor cantidad de funciones posibles mientras lo bombardeaban con todo tipo de publicidad intrusiva. Una fórmula  agotada que considera a los visitantes poco menos que como a “pedazos de carne con ojos”, como ya comenté en aquella entrada en 2005 al hilo de la inversión de Google en AOL. [...]

  3. GEARFUSE » Afternoon Linkage for August 8th, 2008 Friday, August 8, 2008

    [...] Google thinks AOL sucks [...]

  4. No Takebacks: 5 Most Screwed-Up Tech Buys – GigaOM Friday, August 8, 2008

    [...] Friday, August 8, 2008 at 12:48 PM PT Comments (0) As the tech world gets itself in a tizzy over Google saying its 5 percent stake in AOL might be impaired — basically it may now be worth less than they thought it was — we [...]

  5. www.xientic.com.ar » Google reconoce pérdidas en AOL Friday, August 8, 2008

    [...] Google anuncia pérdidas en su negocio con AOL y << ElBlogdeEnriqueDans >> publica un artículo donde se analiza este hecho que, al parecer, es un signo más que marca el fin de era de los portales en Internet. Google reconoce una pérdida contable vinculada a la inversión de mil millones de dólares que hizo en 2005 en AOL, y otorga un valor de menos de la mitad a esa compañía [...] [...]

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