Google News
Google Further Clarifies Nofollow and PageRank Sculpting
Earlier this month, Matt Cutts shared with search marketers that Google had begun treating nofollow differently, especially in regards to "PageRank sculpting," the advanced SEO tactic that aims to control where PageRank flows around a site.
Today, he goes into detail on how Google views PageRank sculpting, and how it treats the nofollow attribute in regards to PageRank flow.
Cutts offers a simplified description of the PageRank process, where a page's value flows out to the various pages it links to equally. When the nofollow attribute originally came on the scene, Google would just remove those links from the equation, according to Cutts. So if a page with 10 "PageRank points" to share had ten links on it, and five were nofollowed, each regular link would pass two PageRank points.
Cutts today said that Google changed this practice more than a year ago to keep the nofollowed links in the equation, but not passing any PageRank points. So in that same example, the regular links would each pass 1 PageRank point, and the nofollowed links would still "use up" their allotted points, even though they did not pass those points on.