New York – Speculation continued to churn on Monday after AOL late last week confirmed it has hired investment banking firm Allen & Co. and law firm Wachtell, Lipton, Rosen & Katz. Though AOL did not specifically say why, numerous media reports have linked the company to potential mergers or acquisitions.
CEO Tim Armstrong, however, has staunchly denied those rumors. “There is no deal on the table, no proposed deal, and both parties are on retainer with us and we work with them,” Armstrong told Adweek. “Our strategy hasn’t changed and we are moving faster than ever on it.”
AOL has struggled to generate profits since spinning off from former parent Time Warner in late 2009 and focusing on its content business. The company’s shares sunk to an all-time low earlier this month after it reported an 8 percent drop in second-quarter revenue. Shares of AOL rose by nearly 3 percent by midday Monday, and are up more than 30 percent since Aug. 10.
This article was also published in Potomac Tech Wire.
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