AOL has been in the news recently for two reasons only. One, the shops and the lagging shares, an unconvincing and two of his recent patent sales, Microsoft and Facebook, which helped the second stave from Yahoo patent attack on him.
AOL sold off most of his patents from Microsoft for $ 1.1 billion. The sale was completed today and, true to his word to AOL, announced that it will give the money back to its shareholders.
It announced a $ 600 million to buy shares in AOL and one-time cash dividend to $ 5.15 per share, which adds nearly 480 million dollars.
Returning the cash to shareholders, AOL bought myself a little more time to get back in the game. It would, however, much more likely, if the business invested all the money again.
Tim Armstrong, AOL CEO, sent the record to its employees:
"Our primary strategic objective is to build brands that are meaningful to businesses and we will continue to promote it willingly. The second strategic objective was to build a significant financial foundation for our investors and more importantly, our investors investors. While we continue to successfully navigate to the AOL, we seek to build an immediate value for all shareholders.
This morning we announced the last steps in the return of all of the approximately $ 1.1 billion proceeds from the patent agreement with Microsoft for our shareholders by the end of the year. Specifically, we started the transaction with Barclays, which seek to buy US $ 600 million in shares of AOL. We also announced a special dividend of $ 5.15 time cash a share. Combination of the buy-back programme and the special dividend is what we promised our investors and allow us to give all shareholders the option to own a larger interest in AOL. "
via Techcrunch
Tags: AOL, MicrosoftView the Original article
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