Ever since internet video firm Roo Group underwent a shakeup last December, we’ve been wondering about the status of News Corp.‘s (NYSE: NWS) investment in the company, which was originally announced in January ‘07. At the time, Roo said News Corp. would take a stake of up to 10 percent of the company, contingent on its meeting certain revenue milestones in the use of Roo’s technology at FoxNews.com and other sites. Now we can attach a dollar value on the deal.

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At the bottom of a new announcement about yet another management change—new independent director appointed, COO Steve Quinn terminated with no reason given—the company says it has released 2 million shares to News Corp. under the agreement, as certain revenue milestones have been hit. If they hit another three-year milestone, then News Corp. can take another 2 million shares. Currently Roo has 38.94 million shares outstanding, so the first 2 million shares is a little over 5 percent. The next 2 million shares, which would be newly issued, would bring News Corp’s stake to around 10 percent. The last line of the release spells it out: “News Corporation has not made a financial investment in ROO.” So basically this was a pay-for-play deal wrapped up as an investment. Roo bought News Corp. as a customer by dangling a little of its own stock in front of it. Of course, the joke is sort of on News Corp, because Roo shares are worth less than 1/15th of what they were when the deal was first announced. Release.