AOL to buy back $600 million in stock and pay special dividend
AOL Inc. announced a $600-million accelerated stock buyback agreement and a special cash dividend of $5.15 a share, the final steps in returning about $1.1 billion to shareholders.
The Internet company said Monday that it will purchase $600 million worth of common stock under an agreement with Barclays. The one-time dividend will be payable Dec. 14.
This month AOL, owner of the Huffington Post and TechCrunch websites, rose to its highest value since it was spun off by Time Warner Inc. in 2009, after an increase in advertising revenue and a one-time gain on a patent sale helped the company return to a profit in the second quarter.
The New York company also adopted a tax asset protection plan as a deterrent to any individual or fund acquiring more than 4.9% of its shares outstanding without approval of the board. AOL said it wants to protect potential benefits that might be curbed if control of the company changed.
AOL shares rose 94 cents, or 2.9%, to $33.86 after the announcement. The company has more than doubled in value this year.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
