AOL Tightens Google Search Deal

NEW YORK (TheStreet) -- AOL(AOL) has strengthened its partnership with fellow Internet giant Google(GOOG) in an attempt to boost its search business.

The two companies, long-standing partners, announced a five-year renewal and expansion of their existing search deal on Thursday. Under the new agreement, Google will continue to provide search services to AOL's content network, in exchange for revenue-sharing, although financial terms of the deal were not disclosed.

Google will also provide AOL with enhanced search technologies, and also bolster its partner's efforts around mobile apps and content. AOL and YouTube have also agreed to a content partnership that will bring AOL's video content to the popular video sharing site.

In a statement, AOL CEO Tim Armstrong described the deal as an important step in his firm's turnaround. The former Google executive is on a mission to breathe new life into AOL, which has been losing share in the Internet search market.

AOL investors responded positively to news of the extended Google deal. The company's shares rose 67 cents, or 2.93%, to $23.57 in early morning trading, while Google shares crept up almost $1 to $461.32.

--Written by James Rogers in New York.

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