Google is asking for $1 Billion it has invested into AOL back with interest. The demand comes just as Time-Warner is trying to sell off pieces of itself, which includes AOL. There is just one small problem. Back in 2005 Google had invested $1 Billion which was about 5% of the value of AOL at that time. But today that stock may only be worth about $250 Million.
Here’s Martin’s statement: “I also want to point out that at the end of last week Google sent us a request to exercise the demand registration rights for its 5% stake in AOL. We are reviewing the request. But we have several options, including proceeding with the request, delaying a decision for some time or buying back Google’s stake at an appraised value, which would obviously be well below the original amount.”
It seems that in this economically challenging times, even the big boys are taking a hit in their wallet.