Google last night announced that it would give its internet search engine rival Yahoo 2.7 million shares worth roughly $300m to settle a patent and stock dispute.
Google, which is preparing for its stock market debut, also agreed to license technology from a subsidiary of Yahoo.
According to a Google filing with the Securities and Exchange Commission, the company agreed to issue Yahoo 2.7 million shares of its common stock in payment for the licence as part of the agreement. Yahoo already owned nearly 5.5 million shares in Google.
According to the latest filing, Yahoo intends to sell shares totalling 1.6 million shares at the time of Google's initial public offering (IPO), which is expected sometime in August.
In their settlement, Yahoo and Google also resolved a stock dispute. A warrant from a June 2000 services partnership gave Yahoo.
