AOL Plans $600M Share Buyback, Special Dividend

by Christopher Freeburn | August 27, 2012 11:06 am

AOL (NYSE:AOL[1]) announced on Monday that it will speed up plans to return $1.1 billion to its shareholders[2].

Company officials said that they will repurchase $600 million in shares, building on previously authorized buyback plans.  AOL will also issue a special dividend of $5.15 a share on December 14, Fox Business noted.

Shares of AOL rose about 2% in early Monday morning trading.

Last month, the company posted second quarter earnings that reversed last year’s loss and exceeded Wall Street estimates[3], while revenues slipped by the lowest percentage in years, also beating expectations. Several weeks ago, the Internet pioneer announced a $550 million share repurchase program.

Company officials said that the fixed-dollar collared accelerated stock repurchase agreement will be run under an agreement with Barclays (NYSE:BCS[4]).

The special dividend will be paid to shareholders of record on December 5.

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