Google has a 5 percent minority stake in AOL

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(Continued) The RFS SEO Newsletter, Aug. 30, 2008. Page 2
Google has a 5 percent minority stake in AOL. Google disclosed in a quarterly report filed with the Securities and Exchange Commission that its AOL stake it acquired three years ago "may be impaired." (Impairment is an accounting term used to describe an acquisition or investment that has lost significant value.) The search giant acknowledged for the first time that it might have to recognize a loss on its investment, whose many problems have made it a financial nightmare for its owner, Time Warner.

Unless there is an about-face, the acquiring company eventually must absorb a charge on its books to account for the diminished value of its holdings, and must disclose it to its shareholders to whom Google is accountable to.

<<< Pr. page Next: This could affect Google's quarterly earnings >>>

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