Much ado

Having made a five percent investment in AOL to prevent it from defecting to Microsoft in 2005, search engine giant Google now worries its buy-in was too rash, reports the Associated Press.

In a quarterly report filed with the Securities and Exchange Commission last week, the company said its $1 billion stake in AOL "may be impaired" — an accounting expression that indicates its investment may be eroding.

On Wednesday of last week Time Warner formalized plans to divide AOL's ailing internet access unit from its ad and content business. Separating the units will enable Time Warner to determine how much money each is making, as well as expedite a sale of one or all of AOL's appendages if need be.

Time Warner has struggled to realize a profit from its AOL acquisition for years. In February, it was suggested AOL may be folded into Yahoo, with which Google now has a sponsored search relationship.

Google purchased five percent of AOL in 2005, winning a bidding war with Microsoft that drove the company's implied market value up to $20 billion. Some analysts believe AOL is worth less than $10 billion today.