New York — AOL announced today that its company is buying back $250 million of its stock to shore up earnings for holders of its remaining shares after the stock lost more than a third of its value this week.
Earlier this week the company reported ad revenue growth for the first time since 2008, although their shares fell more than 25 percent. AOL’s purchase will boost its shares and buy 26 percent of the 106 million outstanding shares.
“We believe this stock repurchase makes sense for both our company and our shareholders. We are continuing the disciplined execution of our strategy and have confidence in our future growth prospects,” said Tim Armstrong, CEO.
The company’s $250 million stock buyback will take place over the next upcoming months.
“This announcement highlights our strong balance sheet and solid cash flow generation,” said chief financial officer Artie Minson. “We believe this is a unique opportunity to invest in our company.”
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