AOL Authorizes $550M Share Repurchase

by Christopher Freeburn | August 3, 2012 1:28 pm

AOL Authorizes $550M Share Repurchase

AOL (NYSE:AOL[1]) said on Friday that it will repurchase $550 million of its shares[2].

The share buyback follows word that the company’s previously announced Dutch tender offer generated a cool response from shareholders, Fox Business noted.

The struggling Internet pioneer said that it had repurchased just $8.8 million in shares under the tender offer, which had authorized the purchase of up to $400 million in shares.

The company announced that it would buy back 292,435 shares at a price of $30 a share after the Dutch auction’s close.

AOL shares rose more than 3% in Friday afternoon trading.

The new share buyback comes as the company still has $40.8 million left unspent from an August 2011 share repurchase authorization.

Last week, AOL reported second-quarter earnings and revenue that topped Wall Street expectations[3], partially due to its $1.1 billion sale of patents to Microsoft (NASDAQ:MSFT[4]).

Company officials said the share repurchase programs and Dutch tender offer were ways AOL planned to return to shareholders the financial gain from the Microsoft deal.

Endnotes:
  1. AOL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AOL
  2. that it will repurchase $550 million of its shares: http://www.foxbusiness.com/technology/2012/08/03/aol-unveils-550-million-share-buyback-plan-sees-weak-response-to-tender-offer/
  3. that topped Wall Street expectations: http://investorplace.com/2012/07/aol-turns-a-profit-in-q2/
  4. MSFT: http://studio-5.financialcontent.com/investplace/quote?Symbol=MSFT

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