Google has committed to purchasing a five percent stake in AOL for US $1 billion as part of an agreement with wide-ranging ramifications for both companies and web users. Google will remain the default AOL search application and AOL video content will be featured prominently within Google Video search results.

Revenue for text-based Google adwords on AOL's umbrella network and AOL graphic banner ads featured in Google's properties will be split between AOL and Google in 20/80 and 80/20 percent distributions, respectively. AOL will be provided an allotted budget by Google specifically for the promotion of its internet service. Ten percent of Google's revenue currently comes from AOL generated ad dollars.

Read the article. (Washington Post)

The Obviouslyist Says: Master Gates is not pleased.