Mountain View, Calif. - Google (NASD: GOOG) disclosed in a regulatory filing this week that it believes its $1 billion investment in Time Warner's (NYSE: TWX) AOL "may be impaired," adding that it will continue to review the investment and may potentially have to take a charge on its books to account for the declining value of its 5% stake in the company. "There can be no assurance that impairment charges will not be required in the future, and any such amounts may be material," Google said in the SEC filing.

Google initially bought its stake in AOL in late 2005, a move believed to have been motivated by its desire to retain a search advertising partnership with the company -- and block rival Microsoft, which was also in the running.

Earlier this week, Time Warner said it would split the AOL dial-up Internet business from the company's online products and services, which could be preparations for a sale of the company.

Analysts cited by the Associated Press estimated that, at current market valuations, Google could lose as much as $500 million if AOL is spun off.

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