[qi:011] In a SEC filing, Google acknowledged that it might come out on the losing side of its $1 billion investment in AOL.

Based on our review, we believe our investment in AOL may be impaired….. We will continue to review this investment for impairment in the future. There can be no assurance that impairment charges will not be required in the future, and any such amounts may be material to our Consolidated Statements of Income.

Back in April, I had pointed out that Google’s investment in AOL was worth $500 million, mostly because there were rumors that AOL was being valued at $10 billion as it was being prepped for a sale.  At the time Google made an investment in AOL, its estimated value (as per deal terms) was $20 billion. Some people believe that AOL is worth less than $10 billion these days.

Apparently buying Bebo for an outrageous sum hasn’t helped prop-up the company valuation, as Time Warner gets set to bust it up. Maybe they need to hire Brett Favre as a spokesperson to get people jazzed up! As for Google – too bad they have to take the lumps. Live by the sword, die by the sword.