AOL shares fall; report of possible Yahoo tie-up

AOL shares fall; report of possible Yahoo tie-up

Stock Market Predictions

NEW YORK (Global Markets) - Investors sent shares of AOL down over 5 percent on Friday after conflicting reports about a possible tie-up between AOL and Yahoo.

AOL Chief Executive Tim Armstrong reportedly approached private equity firms to gauge interest in a deal with Yahoo that would place Armstrong as the head of the combined company, according to a Bloomberg report.

CNBC later reported that a source close to Yahoo said the company had no interest in a deal with AOL.

AOL shares closed down 5.3 percent at $14.72 while Yahoo inched up 0.3 pct to $14.48.

Both Yahoo and AOL declined to comment.

Benchmark analyst Clay Moran said that AOL investors were likely disappointed that Yahoo was not interested in a deal.

This is not the first time that reports of an AOL-Yahoo tie-up have surfaced. Last year, AOL, once famed for its dial up and email services, tapped Bank of America to explore strategic options, including a potential merger with Yahoo, people familiar with the matter told Global Markets at the time.

Yahoo has been embroiled in its own troubles, causing the ousting of its Chief Executive Carol Bartz earlier this week.

(Reporting by Jennifer Saba and Alexei Oreskovic; Editing by Tim Dobbyn)

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AOL shares up as AOL confirms bankers on retainer

AOL shares up as AOL confirms bankers on retainer

Stock Market Predictions

NEW YORK (Global Markets) - AOL Inc shares rose nearly 9 percent on Thursday as the Internet company -- long seen as a merger candidate -- confirmed it has an investment banker and a law firm on retainer.

According to Adweek, teams from investment banking firm Allen & Co and law firm Wachtell, Lipton, Rosen & Katz met AOL executives on Wednesday. Wachtell Lipton lawyer Martin Lipton and Allen & Co banker Nancy Peretsman attended the meeting, Adweek said.

AOL confirmed both firms were on retainer, but did not say for how long they had been hired. Global Markets reported in November that Allen & Co had been hired by AOL along with Bank of America to explore strategic options.

At the time, sources told Global Markets those options included a potential merger with Yahoo Inc.

Lipton and Peretsman could not immediately be reached for comment.

AOL CEO Tim Armstrong told Adweek in an email: "There is no deal on the table, no proposed deal, and both parties are on retainer with us and we work with them. Our strategy hasn't changed and we are moving faster than ever on it."

Sources told Global Markets in December that AOL has explored a breakup and other options since its December 2009 spinoff from Time Warner Co Inc.

AOL shares closed up 8.8 percent at $13.94 on the New York Stock Exchange.

(Reporting by Michael Erman, Paritosh Bansal, Peter Lauria and Jennifer Saba; editing by Matthew Lewis and Andre Grenon)

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AOL approves buyback after shares tumbled 32 percent

AOL approves buyback after shares tumbled 32 percent

Stock Market Predictions

NEW YORK (Global Markets) - AOL said on Thursday it would buy back $250 million of its stock, a move presumably intended to boost confidence in the shares, which fell 32 percent in two days.

After the announcement, the shares rose as much 22 percent.

The drop had wiped out $518 million in value, since the company reported second-quarter results on Tuesday that missed profit expectations amid weak advertising growth.

AOL Chief Executive Tim Armstrong said during a call with analysts on Tuesday that a buyback was under consideration but that the company would likely concentrate on growth.

"I believe the stock is undervalued, and I think our operational results will be the fastest way for us to bring the value of the stock up."

AOL has been in a turnaround mode since it was spun off from Time Warner in December 2009 after one of the most disastrous mergers in recent times.

The company is attempting to reshape itself into an online media and entertainment powerhouse with a growing dependence on advertising revenue as its lucrative subscription dollars from its dial-up business melts away.

AOL has had several shake-ups over the course of Armstrong's leadership, including the July ouster of its top advertising executive, one-time Google executive Jeff Levick.

It reported that second-quarter advertising revenue rose 5 percent, but analysts were expecting bigger gains in display ad revenue. The slow growth suggested rivals like Google and Facebook are taking share.

AOL's board said the company plans to repurchase shares over the next 12 months.

Shares of AOL were up 13.6 percent at $11.61 in afternoon trade on Thursday on the New York Stock Exchange.

(Reporting by Jennifer Saba; Editing by Steve Orlofsky)

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AOL shares up on going private report

AOL shares up on going private report

Stock Market Predictions

(Global Markets) - AOL Inc (AOL.N) shares rose more than 7 percent on Wednesday, a day after New York Post reported that the Internet company's management may be considering to take the company private.

AOL has huddled with bankers in recent days to discuss options, including early-stage discussions to focus on a price that may entice AOL's management to consider such a transaction, the newspaper reported citing sources.

Last week, AOL had confirmed it has an investment banker and a law firm on retainer.

Teams from investment banking firm Allen & Co and law firm Wachtell, Lipton, Rosen & Katz were reported to have met AOL executives last Wednesday.

AOL, which Time Warner (TWX.N) spun off after a disastrous decade-long merger, is trying to regain its status as one of the world's most popular online destinations by investing in efforts such as hyperlocal news network Patch and buying the Huffington Post.

AOL shares were trading up 80 cents at $16.11 in morning trade on Wednesday on Nasdaq after touching a high of $16.44 earlier in the session.

(Reporting by Supantha Mukherjee in Bangalore; Editing by Joyjeet Das)

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