New York – Shares of AOL rose 2 percent early Thursday after the company launched a $400 million tender offer to repurchase its shares. Under the “Dutch auction” tender offer, AOL will buy back shares for $27-$30 each through Aug. 2.
The news comes nearly three months after the company agreed to sell more than 800 of its patents and related patent applications to rival Microsoft for $1.06 billion in cash.
“Today’s announcement is an important first step in returning 100 percent of the proceeds from our patent transaction as expediently and tax efficiently as possible,” said Tim Armstrong, the chairman and CEO of AOL. “Reducing our shares outstanding at attractive prices underscores both financial prudence and our significant belief in the opportunity in front of AOL.”
This article was also published in Potomac Tech Wire.
AOL – investor news release