Gateway is getting a $200 million investment from AOL.

The deal, an update on a two year-old marketing and investment agreement, see Gateway get the final $200 million of $400 million AOL planned to invest in the business. It should go through later this month.

The ISP is buying $200 million of Gateway Series A convertible preferred stock. It is also exchanging the $200 million of Gateway convertible debt it holds for shares of a new class of Gateway Series C convertible preferred stock.

Under the original agreement AOL was to invest $400 million in Gateway Series A convertible preferred stock.

On the marketing side Gateway will continue to distribute and promote AOL's products and services, including the Netscape browser and AOL Instant Messenger across its product line. Gateway will also promote its products through AOL Time Warner magazines and other media. ®