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AOL Buys Video Ad Company for $405M

The purchase will be financed with cash and stock


AOL in lights 630Shares of AOL (AOL) surged almost 5% in Wednesday morning trading after the Internet pioneer announced an acquisition and posted higher-than-expected quarterly earnings.

AOL said it will pay $405 million to purchase, a developer of online video advertising technology. The deal includes $322 million in cash payments and $83 million in AOL common shares, Bloomberg notes.

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During the second quarter, AOL generated sales of $541.3 million, up 2% compared to the same time last year. That missed the $544.5 million that analysts had expected.

Quarterly EPS came in at 46 cents, topping the 43 cents that Wall Street had forecast. Advertising revenue climbed 7% from last year, hitting $361.2 million.

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