by Christopher Freeburn | August 3, 2012 1:28 pm
AOL (NYSE:AOL) said on Friday that it will repurchase $550 million of its shares.
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, partially due to its $1.1 billion sale of patents to Microsoft (NASDAQ:MSFT).
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.
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