New York-based Time Warner has purchased back Google's 5% stake in the stressed Internet company AOL, valuing the deal at US $283 million.

The price at which Time Warner repurchased the stake values AOL at approximately US $5.7 billion.

According to the regulatory filing by Time Warner on Monday Google completed the sale on July 8, 2009. Time Warner is planning to separate itself from AOL later this year.

AOL is now only a small part of the $20 billion implied when Google purchased the 5% stake in 2005 for $1 billion.

According to Tim Armstrong, AOL Chief Executive the company will pay full heed to its Web ads business.

AOL, the Internet service provider has been losing ground due to cut-throat competition and falling advertising sales over the past few years.

Shares of Time Warner closed at $27.60, up 2 cents a share on NYSE, while Google shares plunged to $444.80, down $1.92 a share on the Nasdaq stock market.