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AOL signs new agreement with Google

NEW YORK CITY — Google Inc. will continue to provide the search results on AOL Inc.’s websites under a new, five-year deal the companies signed this week.

The agreement largely reinforces an arrangement that has been in place since 2005. But the new contract, announced Thursday, also expands their cooperation onto AOL sites for cell phones and other gadgets. And it will put AOL video content on Google Inc.’s YouTube site for the first time.

In its search agreement, AOL shares revenue with Google from the text ads that appear alongside search results.

AOL, based in New York, is led by former Google executive Tim Armstrong, who is in the midst of a major overhaul at the Web company.

AOL, which split from Time Warner Inc. last year, has been trying to grow its online ad business as its dial-up Internet service continues to lose customers to faster broadband connections.

Although AOL declined to give specific financial details, Armstrong called the deal a “home run.” He framed it as an important step in the turnaround effort.

“We have a very methodical play book for turning AOL around,” Armstrong said in an interview. “And today represented another big step.”

Armstrong said AOL talked with five or six other search providers before deciding to stick with Google. But the deal was done well ahead of the December expiration of their previous agreement.