"Rebuffing aggressive overtures from Microsoft, Time Warner has agreed to sell a 5 percent stake in America Online to Google for $1 billion as part of an expanded partnership between AOL, once the dominant company on the Internet, and Google, the current online king," reports The New York Times.
"While the deal terms are largely set, it will not be final until it is ratified by the Time Warner board on Tuesday, according to an executive who was briefed on the negotiations."
According to the story:
Google, which prides itself on the purity of its search results, agreed to give favored placement to content from AOL throughout its site, something it has never done before.
Update: There's now an account of the negotiations in The Wall Street Journal.
