Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Payback for AOL Shareholders


Expect AOL to initiate a stock buyback with proceeds from its $1 billion patent sale to Microsoft.

MINYANVILLE ORIGINAL Long-suffering AOL (AOL) stockholders are getting a little joy this week as the company begins giving them the entire $1 billion-plus it got for its patents in a sale to Microsoft (MSFT).

The checks are not in the mail. The money will be spent on a stock buyback that is intended to boost its price. According to, the patent sale proceeds could be worth roughly $11 a share.

The buyback won't be officially announced until later this week, although CEO Tim Armstrong had said the proceeds would go to shareholders. But it seems to be working already. AOL stock is up 78% on the year. Yesterday, it was down only a penny, to $27.15, on a day that the Nasdaq (^IXIC) dropped almost 2%.

The announcement also helped Armstrong defeat an activist shareholder assault from the hedge fund Starboard Value.

< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Featured Videos