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Starboard Sends Letter to AOL Board of Directors Intends to Promptly File Preliminary Proxy Materials for 2012 Annual Meeting
PR Newswire
NEW YORK, April 10, 2012
NEW YORK, April 10, 2012 /PRNewswire/ -- Starboard Value LP (together with its affiliates, "Starboard"), one of the largest shareholders of AOL Inc. ("AOL" or the "Company") (NYSE: AOL) with current ownership of approximately 5.3% of the outstanding shares, today announced that it has delivered a letter to the AOL Board to communicate its views on yesterday's announcement involving the sale of more than 800 of the Company's patents and their related patent applications to Microsoft Corporation. Starboard also announced that it expects to promptly file preliminary proxy materials with the SEC for the election of directors to the AOL Board at the upcoming 2012 Annual Meeting.
The full text of the letter to the Board follows:
April 10, 2012
AOL Inc.770 BroadwayNew York, NY 10003Attn: Members of the Board of Directors
To the Board of Directors,
Starboard Value LP, together with its affiliates ("Starboard"), currently owns approximately 5.3% of the outstanding shares of AOL Inc. ("AOL" or "the Company"), making us one of the Company's largest shareholders. As you know, since December 21, 2011, we have voiced, both publicly and privately, our strong belief that the Company is significantly undervalued and that opportunities exist to create value based on actions within the control of management and the Board of Directors (the "Board").
We have been consistent in our view that AOL's portfolio of intellectual property is non-core, extremely valuable, and should be monetized. On February 24, 2012, we sent a letter urging you to explore actions to monetize and unlock the value of AOL's portfolio of more than 800 patents. We noted our belief that AOL's patent portfolio could produce in excess of $1 billion of licensing income if appropriately harvested and monetized. On March 30, 2012, we wrote you a follow-up letter stressing that the Company should explore the monetization of the patent portfolio with a sense of urgency, and should carefully assess any asset sale or divestiture to ensure the most tax-efficient outcome.
We were pleased to read yesterday's announcement that AOL has entered into a definitive agreement to sell more than 800 of its patents and their related patent applications to Microsoft Corporation ("Microsoft") for aggregate proceeds of $1.056 billion in cash in a tax efficient manner. The Company will also grant Microsoft a non-exclusive license to its retained portfolio of more than 300 patents and patent applications covering categories including advertising, search, social networking, content generation/management, and mapping, among others. We commend management and the Board for taking this meaningful first step in unlocking value for AOL shareholders.
However, the announced sale of the patents does little to address our serious concerns with the Company's poor operating performance and substantial losses in the Display business. We estimate that AOL's Display business is currently losing over $500 million per year, including $150 million in Patch alone. Patch is an unproven and, thus far, unsuccessful business model that is draining valuable resources from the Company. Unfortunately, to date, management and the Board have been unable to meaningfully improve profitability in the Display business and unwilling to consider alternative strategies to realize value from these assets. Conversely, recent public comments by management demonstrate that AOL remains committed to the status quo in its Display business - which we find unacceptable.
We believe when adjusted for the pro forma cash balance from the patent sale, AOL's enterprise value is only $1.14 billion as of the closing stock price on April 9, 2012. AOL generated consolidated EBITDA of $387.5 million in fiscal 2011. When excluding losses from the Display business, we estimate EBITDA would have been $932.5 million in fiscal 2011. This implies that, after considering the material increase in stock price and pro forma increase in cash, AOL currently trades at 2.9x Enterprise Value / Consolidated EBITDA or 1.2x Enterprise Value / EBITDA (excluding Display losses). This valuation does not include any additional value for AOL's Display properties, Company-owned real estate, or any further monetization of AOL's remaining intellectual property. The underperforming Display business appears to be substantially weighing down AOL's potential valuation.
Of additional concern is the potential future use of cash. Pro forma for the patent sale, we estimate that AOL will have approximately $1.43 billion of cash, or $15.35 per share. This represents more than half of the current market capitalization. AOL has a dismal track record of capital allocation, having spent $2.3 billion on acquisitions since 1999 and recording a goodwill impairment charge of approximately $1.4 billion during 2010 alone. Although management stated its intention to "return a significant portion of the proceeds to shareholders," we do not understand why the Company would only return a "significant portion." Why wouldn't the Company simply return all of the proceeds? We remain concerned that shareholder capital will continue to be used for poorly conceived acquisitions and investments into money-losing initiatives like Patch and other Display properties.
Again, we applaud management and the Board for taking a big first step towards realizing the full value of AOL for the benefit of all shareholders. We desire nothing more than to continue to be constructive and helpful in ensuring that the best interests of all shareholders are represented on the Board. There remains a substantial opportunity to unlock shareholder value at AOL. The announced sale of AOL's patents does not address the need for substantial improvement in the operating performance of the Company.
As such, we intend to promptly file preliminary proxy materials with the Securities and Exchange Commission for the election of directors to the AOL Board at the upcoming 2012 Annual Meeting. We remain willing to engage in a constructive dialogue regarding the qualifications of our nominees and a mutually agreeable resolution on board composition. We believe this would be in the best interests of all shareholders.
Best Regards,
Jeffrey C. SmithManaging Member
CERTAIN INFORMATION CONCERNING THE PARTICIPANTS
Starboard Value LP ("Starboard Value LP"), together with the other participants named herein, intends to make a preliminary filing with the Securities and Exchange Commission ("SEC") of a proxy statement and accompanying proxy card to be used to solicit votes for the election of a slate of director nominees at the 2012 annual meeting of shareholders of AOL Inc., a Delaware corporation (the "Company").
STARBOARD STRONGLY ADVISES ALL STOCKHOLDERS OF THE COMPANY TO READ THE PROXY STATEMENT AND OTHER PROXY MATERIALS AS THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. SUCH PROXY MATERIALS WILL BE AVAILABLE AT NO CHARGE ON THE SEC'S WEB SITE AT HTTP://WWW.SEC.GOV. IN ADDITION, THE PARTICIPANTS IN THIS PROXY SOLICITATION WILL PROVIDE COPIES OF THE PROXY STATEMENT WITHOUT CHARGE UPON REQUEST.
The participants in the proxy solicitation are Starboard Value and Opportunity Master Fund Ltd ("Starboard V&O Fund"), Starboard Value and Opportunity S LLC ("Starboard LLC"), Starboard Value LP, Starboard Value GP LLC ("Starboard Value GP"), Starboard Principal Co LP ("Principal Co"), Starboard Principal Co GP LLC ("Principal GP"), Jeffrey C. Smith, Mark R. Mitchell, Peter A. Feld, Ronald S. Epstein, Steven B. Fink, Dennis A. Miller and James A. Warner (collectively, the "Participants").
As of the date of this filing, Starboard V&O Fund beneficially owns 2,586,926 shares of common stock, $0.01 par value (the "Common Stock") of the Company. As of the date of this filing, Starboard LLC beneficially owns 891,610 shares of Common Stock. Starboard Value LP, as the investment manager of Starboard V&O Fund and of certain managed accounts (the "Starboard Value LP Accounts") and the Manager of Starboard LLC, may be deemed the beneficial owner of an aggregate of 4,916,000 shares of Common Stock held directly by Starboard V&O Fund and Starboard LLC and including 1,437,464 shares of Common Stock held in the held in the Starboard Value LP Accounts. Each of Starboard Value GP, as the general partner of Starboard Value LP, Principal Co, as a member of Starboard Value GP, Principal GP, as the general partner of Principal Co and each of Messrs. Smith, Mitchell and Feld, as a member of Principal GP and as a member of each of the Management Committee of Starboard Value GP and the Management Committee of Principal GP, may be deemed the beneficial owner of the 4,916,000 shares of Common Stock held directly by Starboard V&O Fund and Starboard LLC and held in the Starboard Value LP Accounts. As of the date hereof, Mr. Epstein directly owns 850 shares of Common Stock. As of the date hereof, Mr. Fink directly owns 500 shares of Common Stock. As of the date hereof, Mr. Miller owns 2,700 shares of Common Stock. As of the date hereof, Mr. Warner directly owns 581 shares of Common Stock.
About Starboard Value LP
Starboard Value LP is a New York-based investment adviser with a focused and differentiated fundamental approach to investing in publicly traded U.S. small cap companies. Starboard invests in deeply undervalued small cap companies and actively engages with management teams and boards of directors to identify and execute on opportunities to unlock value for the benefit of all shareholders.
Investor contacts:Peter Feld, (212) 201-4878Gavin Molinelli, (212) 201-4828www.starboardvalue.com
Media Contact:Daniel GagnierSard Verbinnen & Co.(212) 687-8080dgagnier@sardverb.com
SOURCE Starboard Value LP
Shareholders will likely get a cash dividend by end of yr.
per a press release. I'm not selling any shares.
So when AOL falls under $26 which it will. You will have the option to sell your puts before The specified date?
I'm not to familiar with puts. Are they like short sells?
I picked up some puts.. Apr 21 $26 puts. Should be in the AM tomorrow
I was thinking it would be a good short sale candidate for tomorrow. I just have to do some DD and see what I come up with.
I do not think these gains will hold. There will be a sell-off tomorrow
Any guess as to weather or not these gains will hold? I think the question is what are the patents?
3rd UPDATE: AOL Sells Patents To Microsoft In $1.06 Billion Deal
Aol (NYSE:AOL)
Today : Monday 9 April 2012
AOL Inc. (AOL) Monday said it agreed to sell more than 800 patents and related products to Microsoft Corp. (MSFT) for $1.06 billion, enabling the embattled online company to return cash to investors as it faces a boardroom showdown with an activist shareholder.
Shares of AOL surged as much as 45% Monday, hitting their highest point in nearly 1 1/2 years, because the company pledged to return a "significant portion" of the sale proceeds to shareholders.
The move comes as activist shareholder Starboard Capital, which owns around 5.2% of AOL shares, is mounting a proxy campaign to win seats on AOL's board. The firm has criticized AOL for not doing enough with its intellectual property and for investing too much in online content that isn't generating enough advertising revenue.
Starboard has suggested that AOL consider selling assets like Moviefone or MapQuest to generate more value.
"The deal creates a cash infusion and, in some ways at least, buys a little time for management to reposition AOL," said Steve Beck, a brand consultant for technology and other big corporations. "But the fundamental issues remain the same."
A representative from Starboard declined to comment on the deal Monday.
AOL didn't announce how it will distribute the money--saying it will do so before the close of the transaction, which is expected later this year. If the deal had been done at the end of 2011, it would have given AOL about $15 a share in cash, the company said. The stock closed Friday at $18.42.
AOL also didn't detail the patents sold, although Chief Executive Tim Armstrong recently referred to them as "beachfront property in East Hampton." A person familiar with the matter said the patents include the intellectual property to Netscape, although AOL will retain the Web browser's brand name and operating system.
In general, the value of patents can fluctuate and be arbitrary, and analysts weren't as confident in AOL's particular portfolio. The patent-advisory firm M-Cam Inc. had valued AOL's holdings at $290 million in March.
"Most on the Street viewed $300 million as the likely maximum value," Benchmark analyst Clayton Moran said. "Relative to this expectation, AOL has created $7.63 per share in stock value."
AOL shares closed up $7.98, or 43%, to $26.40. Moran said a one-time cash dividend "would be appropriate after the close of the deal."
Starboard previously estimated AOL's Internet patents could generate more than $1 billion in licensing income "if appropriately harvested." Under the agreement announced Monday, AOL also received a license to the patents being sold to Microsoft. Those terms weren't disclosed.
Microsoft had no further comment beyond the press release. The sale also includes a nonexclusive license for Microsoft to AOL's remaining portfolio of 300 patents, which include those for advertising, search, content generation, social networking and mapping technology.
Microsoft shares fell 1.3% to $31.10 during a broader market selloff.
AOL said it didn't anticipate paying significant taxes on the deal, which will be booked as a capital loss. It also plans to use $40 million in existing deferred-tax assets to offset any ordinary tax liabilities that would arise from licensing the rest of its patents.
Big media companies are aggressively putting excess cash to work for their shareholders in an effort to boost their market value. News Corp. (NWS, NWSA, NWS.AU), which owns Dow Jones & Co., publisher of this newswire and The Wall Street Journal, launched a fresh $5 billion share-buyback program last year following its thwarted bid to acquire the remainder of BSkyB. Time Warner Inc. (TWX), the former parent of AOL, unveiled a new $4 billion stock-buyback plan in February.
Armstrong previously said the company made a point of securing the patents from Time Warner when AOL was spun off from it in 2009. The company began taking a close look at the assets in September, hiring Goldman Sachs Group Inc. (GS) and Evercore Partners Inc. (EVR) to advise on the sales process.
-By William Launder, Dow Jones Newswires; 212-416-3412; william.launder@dowjones.com
--Kristin Jones contributed to this article.
AOL NEW$ with Microsoft~
AOL Sells Patents To Microsoft In $1.056 Billion Deal
--AOL sells more than 800 patents to Microsoft in $1.056B deal
--AOL stock surges as company promises to share proceeds with holders
--Deal comes as AOL faces pressure from activist investor Starboard Value
(Updates with additional details throughout.)
AOL Inc. (AOL) agreed to sell more than 800 patents and related applications, along with a non-exclusive license to its remaining portfolio of patents, to Microsoft Corp. (MSFT) in a $1.056 billion deal.
The news sent AOL shares surging as the online media company said it intends to return a "significant portion" of the sale proceeds to shareholders. The deal comes as AOL has been feeling heat from shareholders.
"The agreement with Microsoft represents the culmination of a robust auction process for our patent portfolio," AOL Chief Executive Tim Armstrong said.
Assuming the deal had been done at the end of 2011, AOL says it would have had some $15 a share in cash on hand. "So you look at where we're trading at, our current share price, and you think about $15 of that being in cash based on this transaction--AOL is an undervalued company," Armstrong said in an interview on CNBC.
Shares of AOL surged 35% to $24.90 in premarket trading, while Microsoft slid 0.8% to $31.28.
The transaction is expected to close by year's end, and "at that point we'll have an announcement for shareholders" on what the company will do with its cash, Armstrong said.
AOL recently has felt pressure from activist investor Starboard Value LP, which is mounting a proxy campaign to win seats on AOL's board. The investor has been critical of Armstrong's strategy of investing heavily in online-content businesses as a way of building up the company's ad sales. Starboard wants AOL to take action to create value.
Starboard was unavailable for immediate response.
AOL hasn't said exactly what the patents cover, but the company noted that its remaining patents and patent applications include advertising, search, content generation, social networking and mapping technology.
Armstrong has said previously that the company made a point of securing the patents from Time Warner Inc. (TWX) when AOL spun off from them, and that the company began taking a close look at them in September. Last month, he referred to the patents as like "beachfront property in East Hampton."
Brad Smith, Microsoft's general counsel, said, "This is a valuable portfolio that we have been following for years and analyzing in detail for several months."
The race for patents has heated up in the tech space. Among other recent deals, Google Inc. (GOOG) agreed to acquire Motorola Mobility Holdings Inc. (MMI) last year for about $12.5 billion, partly to secure its lucrative patent portfolio, and a number of bidders pursued Nortel Networks Corp.'s (NRTLQ) patents at auction as well.
-By Kristin Jones; Dow Jones Newswires; 212-416-2208; kristin.jones@dowjones.com
AOL, lacking better options, hires firm to sell its patents
AOL is said to have hired Evercore Partners to help it shop around its patent portfolio in hopes of making up for declining dial-up revenues.
by Josh Lowensohn March 23, 2012 4:00 PM PDT (Credit: AOL)
CNET
AOL's effort to sell off a chunk of its patent portfolio keeps chugging ahead. The company has now reportedly hired investment banking advisory firm Evercore Partners to help strike a deal.
Citing three people with knowledge of the hire, Bloomberg says AOL tapped Evercore to find a buyer for more than 800 patents and to "explore other strategic options" -- code for a possible sale or private buyout of the entire company.
An Evercore spokesperson declined to comment on the report, and AOL didn't immediately respond to a request for comment.
The beleaguered Internet pioneer is currently attempting a turnaround led by chief Tim Armstrong, who came on board from Google in 2009. Last December, Armstrong announced plans to reorganize the company, combining its declining dial-up Internet service business and its Web services arm, the latter of which was recently scaled back with layoffs in the Instant Messenger group.
AOL has previously said it's looking for ways to raise cash from its patent portfolio. In a response to a letter from Starboard Value last month that moved to put five new members on AOL's board, the company issued a statement saying it was in the process of making efforts to "accelerate shareholder value creation." Part of that effort involved selling "non-strategic" elements of the company's patent portfolio:
We have a valuable patent portfolio and several months ago, prior to Starboard's first letter, the AOL Board of Directors authorized the start of a process, and hired advisors, to realize the value of certain non-strategic patents.
News of the hire follows Facebook's acquisition of some 750 patents from IBM, a deal made to bolster the social network's defenses against litigious rivals. Just days ahead of the purchase, Facebook was targeted by Yahoo for allegedly infringing on a number of its patents that cover customization and advertising.
Evercore Partners has been involved in the shopping of other patent collections, including that of InterDigital. The King of Prussia, Pa.-based technology company began that effort last summer, later deciding to call it off in January.
~ $AOL ~ Earnings posted, pending or coming soon! In Charts and Links Below!
~ $AOL ~ Earnings expected on Wednesday *
This Week In Earnings: Earnings are coming or are already posted! This is what the charts look like! If you play the earnings these posts can be very helpful to you!
Want more like this? Search Keyword: MACMONEY >>> http://tinyurl.com/MACMONEY <<<
One or more of many earnings sites has alerted this security has or will be posting earnings on or around the day of this message.
http://stockcharts.com/h-sc/ui?s=AOL&p=D&b=3&g=0&id=p88783918276&a=237480049
http://stockcharts.com/h-sc/ui?s=AOL&p=W&b=3&g=0&id=p54550695994
~ Barchart: http://barchart.com/quotes/stocks/AOL?
~ OTC Markets: http://www.otcmarkets.com/stock/AOL/company-info
~ Google Finance: http://www.google.com/finance?q=AOL
~ Google Fin Options: hhttp://www.google.com/finance/option_chain?q=AOL#
~ Yahoo! Finance ~ Stats: http://finance.yahoo.com/q/ks?s=AOL+Key+Statistics
~ Yahoo! Finance ~ Profile: http://finance.yahoo.com/q/pr?s=AOL
Finviz: http://finviz.com/quote.ashx?t=AOL
~ BusyStock: http://busystock.com/i.php?s=AOL&v=2
~ CandlestickChart: http://www.candlestickchart.com/cgi/chart.cgi?symbol=AOL&exchange=US
~ Investorshub Trades: http://ih.advfn.com/p.php?pid=trades&symbol=AOL
~ Investorshub Board Search: http://investorshub.advfn.com/boards/getboards.aspx?searchstr=AOL
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~ 5-Min Wind: http://www.windchart.com/stockta/analysis?symbol=AOL
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http://investorshub.advfn.com/boards/post_prvt.aspx?user=251916
*If the earnings date is in error please ignore error. I do my best.
AOL to Announce Fourth Quarter 2011 Financial Results
http://ih.advfn.com/p.php?pid=nmona&article=50800490&symbol=AOL
Wednesday 21 December 2011, - Activist hedge fund Starboard Value
has taken a 4.5 percent stake in AOL Inc and requested a meeting with the Internet company's Chief Executive and board.
The fund said Wednesday that AOL is deeply undervalued and it blamed the company's massive operating losses in its display business. It also expressed concern over further acquisitions and investments into money-losing growth initiatives like Patch.
Starboard, which estimated that AOL may be losing more than $500 million per year in its display business alone, asked for an in-person meeting with the board to discuss how the company's operating performance and its valuation can be improved.
http://sg.finance.yahoo.com/news/Activist-fund-Starboard-takes-rsg-2108396189.html?x=0&.v=1
Yup, an artifact of mindspring, remember that name!
Haven't seen Earthlink name in a long time.
Should AOL buy Earthlink?
Anything to drive the price higher, lol.
He may be able to do it, but only for pennies to the $, IMO.
I can't agree more! It's a pitty, for AOL used to be a good provider of internet services, customer friendly too; not anymore.
AOL's Armstrong Reportedly Wants To Sell To Yahoo
Eric Savitz Eric Savitz Forbes Staff
From the department of weird ideas: AOL CEO Tim Armstrong is apparently out peddling the idea that the company could sell itself to Yahoo. Question is, what makes him think Yahoo is buying?
Reuters is reporting that Armstrong has been meeting with shareholders in recent weeks pushing the notion that an AOL/Yahoo combination could result in up to $1.5 billion cost savings from eliminating duplicate data centers and other synergies. The report is attributed to “sources with knowledge of the discussions.” Yahoo, of course, is itself shopping for strategic alternatives, and the subject of widespread speculation. The company also lacks a CEO after giving the boot to former chief Carol Bartz.
You would also presume that Armstrong might like the idea of filling Yahoo’s vacant CEO post.
In late trading, AOL jumped 39 cents, or 3%, to $13.54.
AOL to Announce Third Quarter 2011 Financial Results
AOL Inc. (NYSE: AOL) today announced that it will hold its quarterly conference call to discuss third quarter 2011 financial results on Wednesday, November 2, 2011 at 8:00 a.m. Eastern Time (ET). AOL will issue a press release reporting results before the conference call on Wednesday, November 2, 2011.
To listen to the call via webcast, please visit our website at http://ir.aol.com and click on the link titled “Q3 2011 AOL Inc. Earnings Conference Call” located under “Events & Presentations.” We recommend going to the website at least 15 minutes prior to the start of the webcast to register, download and install any necessary software. Instructions for accessing and registering for the webcast will be available at http://ir.aol.com beginning today. Visitors will also be able to listen to an archived copy of the webcast at http://ir.aol.com by clicking into “Events & Presentations” for up to 1 year following the event.
Parties in the United States and Canada should call toll-free (877) 556-5921 and other international parties should call (617) 597-5474. Participants should reference “AOL Call” when dialing into the live call. The conference call is scheduled to begin promptly at its appointed time, and all participants should be on the line by then.
Replays of the conference call will be available at 11:00 a.m. (ET) on Wednesday, November 2, 2011 and run until 11:59 p.m. (ET) on Wednesday, November 16, 2011. To hear the replay, U.S. and Canadian parties should call toll-free (888) 286-8010 and other international parties should call (617) 801-6888. The access code for the replay is 65945554.
Looking for AOL to sell the company for upwards of 24 dollars a share this week. I own no AOL shares but just have a feeling they will be sold this week watch and see.
Time Warner to buy Insight for $3 billion
NEW YORK (Reuters) - Time Warner Cable has reached a deal to buy The Carlyle Group's cable operator Insight Communications Co for around $3 billion in cash, a source familiar with the matter said on Sunday.
Time Warner could announce the deal as soon as Monday morning, the source said.
Insight is the 10th-largest cable operator in the United States, Carlyle's website says. It sells cable television, high-speed Internet and telephone services, serving around 750,000 customers in Illinois, Indiana, Kentucky and Ohio.
Insight representatives approached Time Warner in recent weeks to discuss a deal after failing to reach agreement with other strategic and private equity bidders, the source said.
TWC had dropped out of an auction for Insight earlier this year, because the company believed Carlyle was asking for too much, a source told Reuters in May. Carlyle had originally been looking for around $4 billion, sources said then.
Executives at Time Warner Cable have regularly said that any acquisition targets would not be valued at a higher multiple than its own stock.
This is Time Warner Cable's largest acquisition since it was spun off from former parent Time Warner Inc in 2009. Earlier this year it paid $260 million for NewWave Communications, a small cable operator with cable systems also in the Midwest.
The deal could enable Time Warner Cable to reap programing cost savings, tax benefits as well as other operating synergies. Insight owns cable systems that are contiguous to Time Warner Cable's in the Midwest United States including states of Ohio, Kentucky and Indiana.
Time Warner and Carlyle declined to comment. Insight could not be immediately reached for comment.
Shares of Time Warner Cable closed at $65.51 on Friday.
just getting killed...lol
~AOL.pk???LOLLLLL!!!!..HA!!!
No rebound for AOL. And with Huffington on board, it is not going to help in there turn around. The bloggers that made HuffPost are bailing and the click throughs are down.
AOLLLLL!!!~~~~>WOW HOW LOW CAN YOU GOOOO???
AOL Reports Q2 Earnings Tuesday 9 August 2011
AOL Inc. (NYSE: AOL) released second quarter 2011 results today.
"AOL's return to global advertising growth for the first time since 2008 reflects the hard work of our team and another meaningful step forward in the comeback of the AOL brand," said Tim Armstrong, Chairman and CEO. “AOL is singularly focused on becoming the next great media company for the digital age and we have positioned the Company’s best people, technology and assets in front of some of the largest opportunities on the internet.”
Summary Results
In millions (except per share amounts)
Q2 2011 Q2 2010 Change
Revenue
Advertising $ 319.0 $ 304.7 5 %
Subscription 201.3 260.2 -23 %
Other 21.9 27.3 -20 %
Total revenues $ 542.2 $ 592.2 -8 %
Adjusted operating income before depreciation and amortization (OIBDA) (1) $ 76.6 $ 191.9 -60 %
Restructuring costs $ 0.6 $ 11.1 -95 %
Goodwill impairment charge $ - $ 1,414.4 -100 %
Operating loss $ (5.8 ) $ (1,331.8 ) -100 %
Net loss $ (11.8 ) $ (1,055.0 ) -99 %
Basic and Diluted EPS from continuing operations $ (0.11 ) $ (10.02 ) -99 %
Cash provided by continuing operations $ 104.8 $ 159.0 -34 %
Free Cash Flow (1) $ 77.2 $ 134.5 -43 %
(1)
See Page 8 for a reconciliation of Adjusted OIBDA and Free Cash Flow to the GAAP financial measures the Company considers most comparable.
Q2 Noteworthy Items:
AOL grew consumer usage in key internet growth areas:
AOL Huffington Post Media Group rapidly integrated AOL and The Huffington Post properties, honed its focus on marquee brands and launched new properties globally. User comments on The Huffington Post for Q2 surpassed 12 million and in July surpassed 100 million since the site’s inception, while its unique visitors surpassed 30 million and The New York Times in May according to comScore.
In local, Patch entered 44 additional towns to end Q2 in 846 towns.
In premium formats, the total number of Devil ad impressions served and the number of third party publishers using the Pictela platform grew more than 100% versus Q1 2011.
In Video, viewers and views continued to grow more than 100% year-over-year.
AOL made significant progress in the turnaround of its advertising revenue:
Growing global advertising revenue for the first time since Q2 2008, despite the impact of AOL’s 2010 exit from certain countries, operations and products. These initiatives are discussed further on page 2.
Growing global display revenue year-over-year for the second consecutive quarter, driven by 16% growth in domestic display revenue.
Growing third party network revenue year-over-year for the first time since Q4 2009. Q2 2011 represents the fourth consecutive quarter of sequential growth in third party network revenue.
Subscription revenue declines reflect a 21% decline in access subscribers year-over-year, while monthly average churn of 2.2% continues the trend of meaningful year-over-year churn reduction.
AOL’s change in net loss (excluding a Q2 2010 goodwill impairment charge) and Adjusted OIBDA year-over-year primarily reflects lower total revenue, increased investment in Patch and other strategic areas and a $10.2 million increase in incentive compensation related to acquisitions made in 2010 and 2011.
At June 30, 2011, AOL had $458.7 million of cash. Q2 2011 cash provided by continuing operations was $104.8 million, while Free Cash Flow was $77.2 million.
DISCUSSION OF RESULTS
Revenue
Revenue Summary
Q2 2011 Q2 2010 Change
(In millions)
Advertising revenue
Display $ 137.6 $ 121.0 14 %
Display - domestic 126.8 109.0 16 %
Display - international 10.8 12.0 -10 %
Search and contextual 87.8 111.3 -21 %
AOL Properties 225.4 232.3 -3 %
Third Party Network 93.6 72.4 29 %
Total advertising revenue 319.0 304.7 5 %
Subscription revenue 201.3 260.2 -23 %
Other revenue 21.9 27.3 -20 %
Total revenue $ 542.2 $ 592.2 -8 %
Global advertising revenue grew year-over-year in Q2 2011, reflecting double digit growth in both third party network and display revenue and marking the first quarter of global advertising growth since Q2 2008.
Global advertising revenue grew $14.3 million versus Q2 2010 despite being negatively impacted by $11.8 million related to the following: $5.9 million in lower search and contextual revenue primarily reflecting the sale of ICQ in July 2010; $3.0 million in lower third party network revenue associated with European shutdowns and the de-emphasis of low margin search engine campaign management and lead generation affiliate products; $1.6 million in lower international display revenue reflecting the sale in 2010 of Bebo and ICQ; and $1.3 million in lower domestic display revenue reflecting the sale in 2010 of Digital Marketing Services.
Excluding the impacts of the items discussed above, AOL’s global advertising revenue growth was driven by increases in third party network and display revenue. Third party network revenue increased $24.2 million, primarily reflecting 15% growth in Ad.com and $10.9 million related to the acquisitions of 5 Minutes Ltd. and goviral A/S. Display growth was driven by an 18% increase in domestic display revenue reflecting improved pricing on premium display advertising, a portion of which is attributable to our acquisitions of The Huffington Post and TechCrunch. The increase in display revenue also reflects improved yield management, performance-based fees related to marketing of third party products and services and an increase in Patch revenues. Partially offsetting advertising revenue growth was a decline in search and contextual revenue of $17.6 million which includes $13.3 million primarily related to fewer domestic queries and a 21% year-over-year decrease in domestic AOL-brand access subscribers, as well as a $4.3 million impact from fewer international queries.
Subscription revenue declines reflect the 21% decline in domestic AOL-brand access subscribers noted above and a 3% decline in average revenue per subscriber. Monthly average churn for the period was 2.2%, as compared to 2.6% in the prior year period, and the average paid tenure of our domestic AOL-brand access subscribers has increased to approximately 10 years this period from approximately 9 years in the prior year period.
Other revenue declines primarily reflect lower mobile carrier revenues.
Profitability
AOL’s change in net loss, excluding the impact of the Q2 2010 goodwill impairment charge and Adjusted OIBDA reflects the lower revenue discussed above and increased costs of revenues. Costs of revenues reflect increased personnel costs due primarily to increased investment in Patch and other areas of strategic focus including acquisitions made in 2010 and particularly in Q1 2011. Increased costs of revenue also reflect $10.2 million of increased incentive compensation expense associated with the aforementioned acquisitions and $9.5 million of increased traffic acquisition costs (TAC) reflecting increased third party advertising revenue. Operating income also reflects an $18.5 million decrease in depreciation and amortization in Q2 2011 versus Q2 2010 primarily due to a decline in depreciable assets and a re-evaluation of the useful lives of certain intangible assets, which resulted in incremental amortization expense of $7.1 million in Q2 2010.
Tax
The Company had a pre-tax loss from continuing operations of $7.5 million. However, due to the impact of foreign losses, for which no benefit is received, and changes to state tax and apportionment rates, we recorded income tax expense of $4.3 million. Due to the size of these items in Q2 2011 relative to the Company’s pre-tax loss, the Company’s effective tax rate for the three months ended June 30, 2011 differs significantly from the statutory U.S. federal income tax rate of 35.0% and from the Company’s effective tax rate of 20.0% for the three months ended June 30, 2010.
Cash Flow
Q2 2011 cash from continuing operations was $104.8 million while Free Cash Flow was $77.2 million. Cash provided by continuing operations and Free Cash Flow declined versus Q2 2010, primarily reflecting the increase in operating loss, excluding the impact of the Q2 2010 goodwill impairment charge, partially offset by lower TAC, restructuring and retention bonus payments in Q2 2011 as compared to Q2 2010.
OPERATING METRICS
Q2 2011 Q2 2010 % Change
Subscriber Information
Domestic AOL-brand access subscribers (in thousands) (1) 3,433 4,362 -21 %
Domestic average monthly subscription revenue per AOL-brand access subscriber (ARPU) $ 17.53 $ 18.10 -3 %
Domestic AOL-brand access subscriber monthly average churn (2) 2.2% 2.6% -15 %
Unique Visitors (in millions) (3)
Domestic average monthly unique visitors to AOL Properties 113 112 1 %
Domestic average monthly unique visitors to the AOL Huffington Post Media Group (HPMG) (4) 102 101 1 %
Domestic average monthly unique visitors to AOL Advertising Network (5) 183 184 -1 %
(1)
Domestic AOL-brand access subscribers include subscribers participating in introductory free-trial periods and subscribers that are paying no monthly fees or reduced monthly fees through member service and retention programs. Individuals who have registered for our free offerings, including subscribers who have migrated from paid subscription plans, are not included in the AOL-brand access subscriber numbers presented above. The average monthly subscription revenue per subscriber is calculated as average monthly subscription revenue divided by the average monthly subscribers for the applicable period.
(2)
Churn represents the number of subscribers that terminate or cancel our services, factoring in new and reactivated subscribers. Monthly average churn is calculated as the monthly average of terminations plus cancellations divided by the initial subscriber base plus any new registrations and reactivations for the applicable period.
(3)
See “Unique Visitor Metrics” on page 9 of this press release.
(4)
HPMG is a subset of AOL Properties and excludes Mail, Instant Messaging and AOL Ventures. See “Unique Visitor Metrics” on page 9 of this press release for additional information.
(5)
We also utilize unique visitors to evaluate the reach of our total advertising network, which includes both AOL Properties and the Third Party Network.
Webcast and Conference Call Information
AOL Inc. will host a conference call to discuss second quarter 2011 financial results on Tuesday, August 9, 2011, at 8:00 am Eastern Time (ET). To access the call, parties in the United States and Canada should call toll-free (866) 761-0749 and international parties should call (617) 614-2707. Additionally, a live webcast of the conference call, together with supplemental financial information, can be accessed through the Company's Investor Relations website at http://ir.aol.com. In addition, an archive of the webcast can be accessed through the link above for one year following the conference call, and an audio replay of the call will be available for two weeks following the conference call by calling (888) 286-8010 and international parties should call (617) 801-6888. The access code for the replay is 91984068.
FINANCIAL STATEMENTS
AOL Inc.
Consolidated Statements of Operations
(Unaudited; in millions, except per share amounts)
Three Months Ended June 30, Six Months Ended June 30,
2011 2010 2011 2010
Revenues:
Advertising $ 319.0 $ 304.7 $ 632.7 $ 659.0
Subscription 201.3 260.2 416.7 542.9
Other 21.9 27.3 44.2 54.6
Total revenues 542.2 592.2 1,093.6 1,256.5
Costs of revenues 403.4 335.0 792.3 699.7
Selling, general and administrative 117.3 127.8 238.0 261.1
Amortization of intangible assets 26.7 35.7 50.9 97.9
Restructuring costs 0.6 11.1 28.4 34.5
Goodwill impairment charge – 1,414.4 – 1,414.4
Loss on disposal of assets and consolidated businesses, net – – 1.6 –
Operating loss (5.8 ) (1,331.8 ) (17.6 ) (1,251.1 )
Other loss, net (1.7 ) (4.4 ) (1.1 ) (7.1 )
Loss from continuing operations before income taxes (7.5 ) (1,336.2 ) (18.7 ) (1,258.2 )
Income tax provision (benefit) 4.3 (267.2 ) (11.6 ) (230.4 )
Loss from continuing operations (11.8 ) (1,069.0 ) (7.1 ) (1,027.8 )
Discontinued operations, net of tax – 14.0 – 7.5
Net loss $ (11.8 ) $ (1,055.0 ) $ (7.1 ) $ (1,020.3 )
Per share information:
Basic and diluted loss per common share from continuing operations $ (0.11 ) $ (10.02 ) $ (0.07 ) $ (9.65 )
Discontinued operations, net of tax - 0.13 - 0.07
Basic and diluted net loss per common share $ (0.11 ) $ (9.89 ) $ (0.07 ) $ (9.58 )
Shares used in computing basic and diluted income per common share 107.0 106.7 106.9 106.5
Depreciation expense by function:
Costs of revenues $ 36.0 $ 42.9 $ 74.6 $ 86.3
Selling, general and administrative 6.4 9.0 12.2 19.9
Total depreciation expense $ 42.4 $ 51.9 $ 86.8 $ 106.2
Equity-based compensation by function:
Costs of revenues $ 4.5 $ 2.1 $ 7.9 $ 4.0
Selling, general and administrative 6.5 7.1 13.5 14.9
Total equity-based compensation $ 11.0 $ 9.2 $ 21.4 $ 18.9
Incentive compensation expense related to acquired companies by function: (1)
Costs of revenues $ 10.3 $ 0.4 $ 18.1 $ 0.7
Selling, general and administrative 0.3 – 0.9 –
Total incentive compensation expense related to acquired companies $ 10.6 $ 0.4 $ 19.0 $ 0.7
Traffic Acquisition Costs (included in costs of revenues) $ 74.3 $ 64.8 $ 145.7 $ 154.0
(1)
These amounts relate to incentive cash compensation arrangements with employees of acquired companies made at the time of acquisition. Incentive compensation amounts are recorded as compensation expense over the future service period of the employees of the acquired companies.
AOL Inc.
Consolidated Balance Sheets
(In millions, except per share amounts)
June 30, December 31,
2011 2010
Assets (unaudited)
Current assets:
Cash and equivalents $ 458.7 $ 801.8
Accounts receivable, net of allowances of $11.0 and $16.1, respectively 285.8 307.7
Prepaid expenses and other current assets 52.1 46.8
Deferred income taxes 123.0 82.9
Total current assets 919.6 1,239.2
Property and equipment, net 543.2 529.2
Goodwill 1,072.2 810.9
Intangible assets, net 175.5 99.6
Long-term deferred income taxes 225.4 258.4
Other long-term assets 43.2 25.0
Total assets $ 2,979.1 $ 2,962.3
Liabilities and Equity
Current liabilities:
Accounts payable $ 67.1 $ 80.0
Accrued compensation and benefits 105.1 114.5
Accrued expenses and other current liabilities 194.1 236.3
Deferred revenue 85.0 92.6
Current portion of obligations under capital leases 44.4 35.2
Total current liabilities 495.7 558.6
Obligations under capital leases 75.5 50.9
Restructuring liabilities 2.9 7.0
Deferred income taxes 5.0 –
Other long-term liabilities 76.5 58.9
Total liabilities 655.6 675.4
Stockholders' equity:
Common stock, $0.01 par value, 107.0 million and 106.7 million shares issued and outstanding at June 30, 2011 and December 31, 2010, respectively
1.1 1.1
Additional paid-in capital 3,405.5 3,376.6
Accumulated other comprehensive loss, net (273.1 ) (287.9 )
Accumulated deficit (810.0 ) (802.9 )
Total stockholders' equity 2,323.5 2,286.9
Total liabilities and stockholders' equity $ 2,979.1 $ 2,962.3
AOL Inc.
Consolidated Statements of Cash Flows
(Unaudited; in millions)
Six Months Ended June 30,
2011 2010
Operations
Net loss $ (7.1 ) $ (1,020.3 )
Less: Discontinued operations, net of tax - 7.5
Net loss from continuing operations (7.1 ) (1,027.8 )
Adjustments for non-cash and non-operating items:
Depreciation and amortization 137.7 204.1
Asset impairments 4.2 1,417.3
Equity-based compensation 21.4 18.9
Other non-cash adjustments 7.5 4.9
Excess tax benefit on equity-based compensation - (1.5 )
Deferred income taxes (14.2 ) (412.7 )
Changes in operating assets and liabilities, net of acquisitions (54.0 ) 118.7
Cash provided by continuing operations 95.5 321.9
Cash used by discontinued operations - (0.8 )
Cash provided by operations 95.5 321.1
Investing Activities
Investments and acquisitions, net of cash acquired (372.2 ) (24.2 )
Proceeds from disposal of assets and consolidated businesses, net 1.3 4.8
Capital expenditures and product development costs (36.1 ) (45.3 )
Investment activities from discontinued operations - 14.8
Cash used by investing activities (407.0 ) (49.9 )
Financing Activities
Principal payments on capital leases (23.7 ) (17.0 )
Excess tax benefit on equity-based compensation - 1.5
Increase in cash collateral securing letters of credit (12.8 ) -
Cash used by financing activities (36.5 ) (15.5 )
Effect of exchange rate changes on cash and equivalents 4.9 (6.9 )
Increase (decrease) in cash and equivalents (343.1 ) 248.8
Cash and equivalents at beginning of period 801.8 147.0
Cash and equivalents at end of period $ 458.7 $ 395.8
SUPPLEMENTAL INFORMATION – UNAUDITED
Items impacting comparability: The following table represents certain items that impacted the comparability of net income for the three and six months ended June 30, 2011 and 2010 (In millions, except per share amounts):
Three Months Ended June 30, Six Months Ended June 30,
2011 2010 2011 2010
Accelerated amortization of intangible assets (1) $ – $ (7.1 ) $ – $ (40.0 )
Restructuring costs (0.6 ) (11.1 ) (28.4 ) (34.5 )
Goodwill impairment charge – (1,414.4 ) – (1,414.4 )
Equity-based compensation expense (11.0 ) (9.2 ) (21.4 ) (18.9 )
Incentive compensation expense related to acquired companies (2) (10.6 ) (0.4 ) (19.0 ) (0.7 )
Pre-tax impact (22.2 ) (1,442.2 ) (68.8 ) (1,508.5 )
Income tax impact (3) 6.3 14.5 23.1 45.0
After-tax impact (15.9 ) (1,427.7 ) (45.7 ) (1,463.5 )
Income tax benefit related to anticipated worthless stock deduction – 302.7 7.1 302.7
Discontinued operations, net of tax (4) – 14.0 – 7.5
After-tax impact of items impacting comparability of net income $ (15.9 ) $ (1,111.0 ) $ (38.6 ) $ (1,153.3 )
Impact per basic and diluted common share $ (0.15 ) $ (10.41 ) $ (0.36 ) $ (10.83 )
Effective tax rate (5) 40.1 % 39.9 % 40.1 % 39.9 %
(1)
Amortization of intangible assets for the three and six months ended June 30, 2010 included the impact of the reevaluation of the useful lives of certain intangible assets in the fourth quarter of 2009 in connection with our restructuring initiative.
(2)
These amounts relate to incentive cash compensation arrangements with employees of acquired companies made at the time of acquisition. Incentive compensation amounts are recorded as compensation expense over the future service period of the employees of the acquired companies. For tax purposes, a portion of these costs are treated as additional basis in the acquired entity and are not deductible, until disposition of the acquired entity.
(3)
The income tax impact is calculated by applying the normalized effective tax rate to deductible items. Items that are not deductible include the majority of the goodwill impairment charge and a portion of the incentive compensation expense, discussed above.
(4)
Discontinued operations, net of tax includes the results of operations of buy.at for the three and six months ended June 30, 2010.
(5)
For the three and six months ended June 30, 2011 was calculated based on AOL’s 2011 projected normalized annual effective tax rate. The income tax impact for the three and six months ended June 30, 2010 was calculated based on AOL’s 2010 normalized annual effective tax rate.
AOL Inc.
Reconciliation of Adjusted OIBDA to Operating Income and Free Cash Flow to Cash Provided by Continuing Operations
(Unaudited; in millions)
Three Months Ended June 30, Six Months Ended June 30,
2011 2010 2011 2010
Operating income (loss) $ (5.8 ) $ (1,331.8 ) $ (17.6 ) $ (1,251.1 )
Add: Depreciation 42.4 51.9 86.8 106.2
Add: Amortization of intangible assets 26.7 35.7 50.9 97.9
Add: Restructuring costs 0.6 11.1 28.4 34.5
Add: Equity-based compensation 11.0 9.2 21.4 18.9
Add: Asset impairments 2.7 1,415.9 4.2 1,417.3
Add: Losses/(gains) on disposal of consolidated businesses, net - - 1.6 -
Add: Losses/(gains) on asset sales (1.0 ) (0.1 ) - (0.5 )
Adjusted OIBDA $ 76.6 $ 191.9 $ 175.7 $ 423.2
Cash provided by continuing operations $ 104.8 $ 159.0 $ 95.5 $ 321.9
Less: Capital expenditures and product development costs 14.9 15.8 36.1 45.3
Less: Principal payments on capital leases 12.7 8.7 23.7 17.0
Free Cash Flow $ 77.2 $ 134.5 $ 35.7 $ 259.6
Note Regarding Non-GAAP Financial Measures
This press release and its attachments include the financial measures Adjusted OIBDA and Free Cash Flow, both of which are defined as non-GAAP financial measures by the Securities and Exchange Commission (SEC). These measures may be different than similarly-titled non-GAAP financial measures used by other companies. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles (GAAP). Explanations of our non-GAAP financial measures are as follows:
Adjusted OIBDA. We define Adjusted OIBDA as operating income before depreciation and amortization excluding the impact of restructuring costs, non-cash equity-based compensation, gains and losses on all disposals of assets (including those recorded in costs of revenues) and non-cash asset impairments. During the first quarter of 2011, we modified our definition of Adjusted OIBDA to exclude the impacts of restructuring costs, which we do not believe are indicative of our core operating performance, and equity-based compensation, which will allow us to be more closely aligned with the industry and analyst community. We consider Adjusted OIBDA to be a useful metric for management and investors to evaluate and compare the ongoing operating performance of our business on a consistent basis across reporting periods, as it eliminates the effect of non-cash items such as depreciation of tangible assets, amortization of intangible assets that were primarily recognized in business combinations and asset impairments, as well as the effect of gains and losses on asset sales, which we do not believe are indicative of our core operating performance. A limitation of this measure, however, is that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in our business or the current or future expected cash expenditures for restructuring costs. The Adjusted OIBDA measure also does not include equity-based compensation, which is and will remain a key element of our overall long-term compensation package. Moreover, the Adjusted OIBDA measures do not reflect gains and losses on asset sales or impairment charges related to goodwill, intangible assets and fixed assets which impact our operating performance. We evaluate the investments in such tangible and intangible assets through other financial measures, such as capital expenditure budgets, investment spending levels and return on capital.
Free Cash Flow. We define Free Cash Flow as cash provided by continuing operations, less capital expenditures and product development costs and principal payments on capital leases. We consider Free Cash Flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the continuing business that, after capital expenditures and product development costs and principal payments on capital leases, can be used for strategic opportunities, including investing in our business, making strategic acquisitions, and strengthening the balance sheet. Analysis of Free Cash Flow also facilitates management's comparisons of our operating results to competitors' operating results. A limitation on the use of this metric is that Free Cash Flow does not represent the total increase or decrease in cash for the period because it excludes certain non-operating cash flows and the results of discontinued operations.
Unique Visitor Metrics
We utilize unique visitor numbers to evaluate the performance of AOL Properties. In addition, we utilize unique visitor numbers to evaluate the reach of our total advertising network, which includes both AOL Properties and the Third Party Network. Unique visitor numbers provide an indication of our consumer reach. Although our consumer reach does not correlate directly to advertising revenue, we believe that our ability to broadly reach diverse demographic and geographic audiences is attractive to brand advertisers seeking to promote their brands to a variety of consumers without having to partner with multiple content providers. The source for our unique visitor information is a third party (comScore Media Metrix, or “Media Metrix”). While we are familiar with the general methodologies and processes that Media Metrix uses in estimating unique visitors, we have not performed independent testing or validation of Media Metrix’s data collection systems or proprietary statistical models, and therefore we can provide no assurance as to the accuracy of the information that Media Metrix provides.
Following the acquisition of The Huffington Post on March 4, 2011, AOL aligned all of its content under the newly formed AOL Huffington Post Media Group (HPMG), which is a subset of AOL Properties and excludes Mail, Instant Messaging and AOL Ventures. Unique visitors to The Huffington Post are included subsequent to the acquisition date.
Cautionary Statement Concerning Forward-Looking Statements
This press release and our conference call at 8:00 a.m. Eastern Time today may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 regarding business strategies, market potential, future financial and operational performance and other matters. Words such as “anticipates,” “estimates,” “expects,” “projects,” “forecasts,” “intends,” “plans,” “will,” “believes” and words and terms of similar substance used in connection with any discussion of future operating or financial performance identify forward-looking statements. These forward-looking statements are based on management’s current expectations and beliefs about future events. As with any projection or forecast, they are inherently susceptible to uncertainty and changes in circumstances. Except as required by law, we are under no obligation to, and expressly disclaim any obligation to, update or alter any forward-looking statements whether as a result of such changes, new information, subsequent events or otherwise. Various factors could adversely affect our operations, business or financial results in the future and cause our actual results to differ materially from those contained in the forward-looking statements, including those factors discussed in detail in the “Risk Factors” section contained in our Annual Report on Form 10-K for the year ended December 31, 2010 (the “Annual Report”), filed with the Securities and Exchange Commission. In addition, we operate a web services company in a highly competitive, rapidly changing and consumer- and technology-driven industry. This industry is affected by government regulation, economic, strategic, political and social conditions, consumer response to new and existing products and services, technological developments and, particularly in view of new technologies, the continued ability to protect intellectual property rights. Our actual results could differ materially from management’s expectations because of changes in such factors. Further, lower than expected market valuations associated with our cash flows and revenues may result in our inability to realize the value of recorded intangibles and goodwill. In addition, achieving our business and financial objectives, including growth in operations and maintenance of a strong balance sheet and liquidity position, could be adversely affected by the factors discussed or referenced under the “Risk Factors” section contained in the Annual Report as well as, among other things: 1) changes in our plans, strategies and intentions; 2) the impact of significant acquisitions, dispositions and other similar transactions; 3) our ability to attract and retain key employees; 4) any cost reductions, restructuring actions or similar efforts, including with respect to any associated savings, charges or other amounts; 5) market adoption of new products and services; 6) the failure to meet earnings expectations; 7) asset impairments; 8) decreased liquidity in the capital markets; 9) our inability to access the capital markets for debt securities or bank financings; and 10) the impact of “cyber-warfare” or terrorist acts and hostilities.
AOL Launches AOL HD
Wednesday 27 July 2011
AOL Inc. (NYSE: AOL) today announced the launch of AOL HD, a dedicated app that will deliver rich high-definition video to users across connected TV platforms including Boxee, Roku and Yahoo! Connected TV. AOL HD will allow consumers to watch high quality AOL video and audio content for free by streaming online offerings directly to users’ television sets. Utilizing the latest connected TV platforms in the marketplace, AOL HD delivers on AOL’s strategy to deliver content to its audience across multiple screens: computer, mobile and now television.
“There has been explosive growth in the number of users who watch and interact with internet content on their televisions,” said Rob DelaCruz, General Manager for AOL HD. “We’re uniquely positioned to serve this audience, delivering premium original content in a rich high definition experience and engaging users across all of their screens.”
AOL HD will feature three main channels of high-definition AOL Huffington Post Media Group content — entertainment, technology and home. Each channel will feature a breadth of rich content from properties like Moviefone, Engadget and HuffPost Entertainment. Other content will include cooking videos from celebrity chef personalities like Curtis Stone and Gail Simmons, as well as AOL Music’s full CD Listening Party (CDLP) audio content, which allows users to listen to free previews of entire albums before they’re released. AOL will introduce new video channels and content, including casual games, later this year.
“AOL has invested a lot of resources to create, curate, and deliver an impressive array of compelling content," said Avner Ronen, CEO of Boxee. "We're happy AOL has chosen Boxee to help distribute their content to our nearly two million users across the globe."
“Roku customers are looking for a variety of entertainment options, and AOL HD delivers,” says Jim Funk, Vice President of Business Development at Roku. “From technology and entertainment news to home improvement and cooking tips, the AOL HD channel is a great addition to the Roku platform.”
With the launch of AOL HD, AOL will be able to interact with users in the comfort of their living rooms by delivering compelling content and entertainment while also providing AOL advertisers with more innovative ways to reach potential customers. Initially launching on Boxee, Roku, Yahoo! Connected TV and Divx, AOL HD will reach an installed user base of over 10MM users* and be available for immediate download from each platform's app library. Plans to expand AOL HD to other connected platforms are scheduled in the coming months.
AOL to Announce Second Quarter 2011 Financial Results
Date : 07/20/2011 @ 4:30PM
AOL Inc. (NYSE: AOL) today announced that it will hold its quarterly conference call to discuss second quarter 2011 financial results on Tuesday, August 9, 2011 at 8:00 a.m. Eastern Time (ET). AOL will issue a press release reporting results before the conference call on Tuesday, August 9, 2011.
To listen to the call via webcast, please visit our website at http://ir.aol.com and click on the link titled “Q2 2011 AOL Inc. Earnings Conference Call” located under “Events & Presentations.” We recommend going to the website at least 15 minutes prior to the start of the webcast to register, download and install any necessary software. Instructions for accessing and registering for the webcast will be available at http://ir.aol.com beginning today. Visitors will also be able to listen to an archived copy of the webcast at http://ir.aol.com by clicking into “Events & Presentations” for up to 1 year following the event.
Parties in the United States and Canada should call toll-free (866) 761-0749 and other international parties should call (617) 614-2707. Participants should reference “AOL Call” when dialing into the live call. The conference call is scheduled to begin promptly at its appointed time, and all participants should be on the line by then.
Replays of the conference call will be available at 11:00 a.m. (ET) on Tuesday, August 9, 2011 and run until 11:59 p.m. (ET) on Tuesday, August 23, 2011. To hear the replay, U.S. and Canadian parties should call toll-free (888) 286-8010 and other international parties should call (617) 801-6888. The access code for the replay is 91984068.
Patch Makes Key Editorial Announcements
Today : Tuesday 17 May 2011
Patch, the hyperlocal news, information, and community arm of AOL Huffington Post Media Group, today announced that it will launch 33 new sites in New Hampshire, Iowa, and South Carolina – the first three states to hold primaries in 2012. In addition, Patch has announced the launch of the first Patch Military site: Camp Pendleton Patch.
“With its hyperlocal focus, Patch has the ability to be the eyes and ears for what is happening at the grassroots level all across the country,” said Arianna Huffington, President and Editor-in-Chief of AOL Huffington Post Media Group. “By expanding to key primary states, Patch positions itself squarely on the front lines of the presidential campaign and will be able to deliver a real-time snapshot of how pivotal communities are reacting to candidates – as well as immediate feedback on whether the issues that matter most to these towns are being addressed. Patch Military is a particularly satisfying new offering, in keeping with our efforts to ensure that America’s military families have the support they have earned. The average military family moves every 2.9 years, so it’s vital that they have a way to easily keep up with what is going on in their communities and have a platform for directly sharing news and information with their neighbors.”
The 33 new primary state sites will reflect the traditional Patch model of local news, information, and community interaction, and provide a platform for citizens, candidates, and influencers to discuss local issues and events, including the impact of national and state issues on the local landscape heading into the 2012 election season. Designed as a non-partisan forum, the sites will utilize Patch's team of local professional journalists to offer comprehensive coverage of the issues in play, instead of a “horse race” approach to reporting. Additionally, the sites will offer interactive features like blogging and polls, social media tools, candidate questionnaires and video interviews.
“Since our launch in 2009, Patch’s mission has been to offer the most trusted local news and information via our platform, our team of professional journalists in each town, and active participation in the communities we serve,” said Warren Webster, President of Patch Media. “These new sites perfectly align with that mission. Primary state Patches will empower citizens to consume and share election information in some of the most politically engaged areas of the country. Through Patch Military, members of the armed services and their families will have a comprehensive resource to find and share the information that is most important to them."
The launch of the first Patch Military site is an extension of Patch's mission to offer in-depth coverage designed to improve residents' lives and connect them with neighbors, events, and services in their communities. Camp Pendleton Patch, which is not sponsored by the base, will cover both Camp Pendleton and neighboring Oceanside, CA. The site’s editor, Jared Morgan, is a former U.S. Marine and a current member of the Iraq and Afghanistan Veterans of America, the National Press Photographers Association, and the Society of Professional Journalists.
Patch Military sites will be modeled after traditional Patch sites and will also provide service members and their families with the detailed information they need on and around their installations. The sites also aim to help deployed service members remain connected with their communities back home. Patch currently operates several sites in communities with significant military populations; additional Patch Military sites will debut later this year.
Patch recently launched its blogging platform, “Local Voices,” inviting engaged citizens and civic leaders to share their perspectives and have a voice in their communities.
Later this year, Patch will launch three sites as part of its recently announced Patch Latino initiative. The sites will reflect the traditional Patch model of local news, community and information and also offer dedicated coverage of topics of special interest to the Latino population. All editorial content on the sites will be in Spanish.
Patch.com, part of AOL Huffington Post Media Group, is a platform of hyperlocal news and information sites managed by professional local journalists, photographers, and videographers. The premier online destination for residents who want to participate in discussions, post information and announcements, and get involved in their communities, Patch features comprehensive and trusted local coverage as well as user interaction and engagement between business owners and consumers. Patch is now in over 800 communities in 18 states plus Washington, D.C.
AOL says no thanks to private equity
By Jennifer Saba and Nadia Damouni Jennifer Saba And Nadia Damouni Mon May 16, 10:25 pm ET
NEW YORK (Reuters) – Here's one deal AOL won't do: go private.
AOL Chief Executive Tim Armstrong struck down the idea that it would pursue a deal with private equity firms similar to the deal contemplated last fall that would have combined it with Yahoo.
"We are not focused on a private equity deal now," AOL Chief Executive Tim Armstrong said during the Reuters Global Technology Summit in New York. "We are focused on a turnaround and we're pretty excited about the business overall."
Despite having been burned over the past decade on a string of deals gone sour -- Bebo, purchased for $850 billion, was sold for $10 million -- the now independent company has been on a shopping spree. It has snapped up the popular news site Huffington Post and influential technology blog TechCrunch.
"We would opportunistically add more assets to the platforms that we thought would be really successful," Armstrong said.
Last fall, AOL was in talks with several private equity firms to acquire Yahoo, contingent on Yahoo selling its prized Asian assets, which include a 40 percent stake in China's Alibaba Group.
Relations between Yahoo and the Alibaba Group strained further last week over the sequence of events involving the transfer of one of Alibaba Group's main assets, its online e-commerce payment system similar to eBay's PayPal, Alipay.
AOL's Armstrong said the company wants to remain independent.
Since taking the helm of the troubled AOL in April 2009 and overseeing a spin-out from Time Warner, Armstrong has been trying to shape the company into an online media and entertainment destination.
AOL is investing heavily in Patch, a local news network launched in more than 830 communities in the United States [ID:nN16294379], and rolled out a professional division to attract government, energy and defense executives. [ID:nN15203120]
"I hope you don't think we have done any 'Hail Mary's,'" Armstrong said, using a U.S. football phrase describing a last-ditch attempt to win a game. "Arianna's company is the best social distributor of content, has some of the most addictive and obsessive content on the Internet."
AOL bought the Huffington Post, launched by Arianna Huffington in 2005, for $315 million.
Dial-up access still represents roughly 40 percent of AOL's revenue, and Armstrong said he has no plans to rid the company of that division.
"If we look at our vision of being highest quality, highest scale digital media player and brand advertising player, we have many of the components from a structural standpoint," he said.
"We still have a rule of no 'Hail Marys.'" (For other news from Reuters Global Technology Summit, click http://www.reuters.com/summit/GlobalTech11?pid=500) (Reporting by Jennifer Saba and Nadia Damouni; Editing by Gary Hill)
http://news.yahoo.com/s/nm/20110517/tc_nm/us_summit_aol
CEO Interview: Tim Armstrong on AOL's turnaround
By RACHEL METZ, AP Technology Writer Rachel Metz, Ap Technology Writer Fri May 13, 1:21 pm ET
NEW YORK – A lot has changed at AOL as it tries to shed the vestiges of its '90s image: the iconic "You've got mail" greeting and the promotional CDs stuffed into mailboxes across the country.
The company has engaged in an artsy rebranding, rolled out hundreds of local news sites and bought the online news hub The Huffington Post for $315 million.
At the helm is CEO Tim Armstrong, whom AOL hired from Google to stage a turnaround.
Armstrong has led AOL since April 2009. He oversaw its separation from Time Warner Inc. and debut as a publicly traded company eight months later.
All the while, he has tried to hone AOL's focus on online content and advertising — a tricky task for a company with roots as a dial-up Internet access provider.
That transition began well before Armstrong's arrival. Yet despite Armstrong's experience as Google's advertising chief for North and South America, AOL still struggles. Its online ad revenue fell last year and so far this year, despite an improving market.
Still, by doing such things as cutting the number of employees, shedding less-profitable websites and purchasing new ones such as The Huffington Post, Armstrong is optimistic that AOL can succeed.
The Associated Press recently sat down with Armstrong, 40, at the company's headquarters in New York's East Village. He talked about why he wanted to lead AOL and how it's going so far.
Q: Why did you think it would be a good idea to leave Google for AOL?
A: AOL, I think, represented an opportunity for a few things. One is I'm a big believer in the AOL brand, and I think AOL as a brand has touched hundreds of millions of people around the world. Reigniting that brand is a very exciting challenge and a big opportunity. Two is I think the Internet is still in the early innings. Especially when we look at content or some things we're investing in, those models are still being figured out, so there's a big opportunity there. And then number three is, having spent a lot of time on search ads and other things, brand advertising (broad marketing campaigns by larger companies) is going to come online, so I think there's a really incredible business opportunity behind brand advertising.
Q: Was part of the decision motivated by the desire to run a company? This is the first time you've been in that position.
A: I'm a person who likes to tackle challenges. Google was a challenge when I got there. I think AOL's a challenge. The way we run the company is a very team-focused environment. I like to think that this company is all 5,000 people working together. Part of my job is setting the vision and setting where we're going. One of the things that's best about AOL is we get to work in a team-focused environment.
Q: How has AOL's content business changed since the acquisition of the Huffington Post?
A: The Huffington Post has been a big front door to the Internet and is growing quickly as well, so it also gives us the ability to increase our distribution as a company across the board. And for advertisers, we have two of the most affluent audiences online. So I think bringing in The Huffington Post has allowed us to actually fuel where the future of the company is going in terms of content creation, content distribution and content monetization. And it has allowed us also, frankly, to continue to change the culture here. Probably the biggest thing I've been focused on the last two years is changing the culture here to a culture that's really of the future of the Internet. The Huffington Post is just helping accelerate that.
Q: A lot of people have long thought of AOL as the "You've Got Mail" company or as "that company that used to send me those CD-ROMs in the mail back in the `90s." How do you think people on the outside, consumers, think of AOL now?
A: That's actually been one of the most interesting things, just personally. When I first got to the company, I heard a few pieces of feedback. One was a lot about the merger with Time Warner and people focused on that. The second thing was that they weren't really sure what AOL did anymore. They kind of knew AOL from the disc days.
Q: Yeah, when you mention a website AOL owns like tech blog Engadget some people say, "Oh, they own that?"
A: Right. I think a lot of it was just that old perception. If people used our services, they usually had a lot of complaints about them. When I was out and about, just doing things, people would stop me and say, "Oh, you're the AOL person, right? I have this issue with my account." I still get emails from people all the time, users, which I love getting.
But about six months ago, something started to change. The difference between the last six months and probably two years ago is when people stop me now, they say, "Oh, I'm addicted to the front page of AOL. I love it. I love the new way the email's been designed." I think if the average person that uses AOL can't physically see the changes in the company, we've failed. Forget about the financial industry and forget about our stock and all that other stuff. Our number-one lead indicator of this company being successful is the people who touch our products and services actually physically seeing the level we care about internally translated externally. I think that's starting to happen, and that's eventually what is going to change the AOL brand.
Q: What's one gadget you can't live without?
A: My BlackBerry. I've had it for years, but I think it's one of the things I've appreciated most because ... it gives me more time with my family and allows more communication to go around the company. Also, I just had hip surgery, and the other gadget I would suggest for people who have injuries from sports in their knees or hips is an aquatic running suit and aquatic running shoes. I run now in the morning as therapy for my hip.
Q: You use this suit to run in a pool?
A: Yeah. It's not the most attractive running outfit, but it's pretty amazing for the results. I was a huge runner after college, did some marathons and stuff, but haven't been able to run because of my hip. Getting back into it is exciting. For a lot of the people I know who have joint problems, I've said, "go out and get the aquatic running suit."
Q: Maybe you could start a team?
A: (Laughs) Yeah!
http://news.yahoo.com/s/ap/20110513/ap_on_bi_co_ne/us_ceo_interview_aol
05/04/2011 AOL Inc. released first quarter 2011 results today.
“Today represents an important milestone in the turnaround of AOL as global display revenue grew for the first time since Q4 2007,” said Tim Armstrong, Chairman and CEO. “I am proud of the work completed thus far and we remain focused on accelerating our momentum through continued execution of our strategy to become the premier digital content company.”
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AOL to Announce First Quarter 2011 Financial Results
Today : Monday 11 April 2011
AOL Inc. (NYSE: AOL) today announced that it will hold its quarterly conference call to discuss first quarter 2011 financial results on Wednesday, May 4, 2011 at 8:00 a.m. Eastern Time (ET). AOL will issue a press release reporting results before the conference call on Wednesday, May 4, 2011.
To listen to the call via webcast, please visit our website at http://ir.aol.com and click on the link titled “Q1 2011 AOL Inc. Earnings Conference Call” located under “Events & Presentations.” We recommend going to the website at least 15 minutes prior to the start of the webcast to register, download and install any necessary software. Instructions for accessing and registering for the webcast will be available at http://ir.aol.com beginning today. Visitors will also be able to listen to an archived copy of the webcast at http://ir.aol.com by clicking into “Events & Presentations” for up to 1 year following the event.
Parties in the United States and Canada should call toll-free (866) 713-8307 and other international parties should call (617) 597-5307. Participants should reference “AOL Call” when dialing into the live call. The conference call is scheduled to begin promptly at its appointed time, and all participants should be on the line by then.
Replays of the conference call will be available at 11:00 a.m. (ET) on Wednesday, May 4, 2011 and run until 11:59 p.m. (ET) on Wednesday, May 18, 2011. To hear the replay, U.S. and Canadian parties should call toll-free (888) 286-8010 and other international parties should call (617) 801-6888. The access code for the replay is 46499943.
AOL cuts 900 jobs worldwide, 20 pct of work force
By RACHEL METZ and BARBARA ORTUTAY, AP Technology Writers Rachel Metz And Barbara Ortutay, Ap Technology Writers
Thu Mar 10, 1:43 pm ET
NEW YORK – AOL said Thursday it will slash 900 jobs worldwide, or nearly 20 percent of its work force, partly to eliminate overlap that stems from its recent purchase of The Huffington Post.
About 200 of the cuts are from AOL's content and technology departments in the U.S. The remaining 700 are at AOL's offices in India, which mainly provide back-office support to the U.S. But AOL spokesman Graham James said 300 of those will move to other companies, which are taking over support functions.
Thursday's cuts leave AOL with 3,500 employees in the U.S. and about 500 overseas. The total work force is a fifth of what the company had at its peak in 2004, when its staff numbered more than 20,000. The company pared thousands of workers in the years leading up to its separation from Time Warner Inc. in late 2009. After the companies broke up, AOL cut about 2,300 of its then-6,900 employees — or about a third of its work force — through layoffs and buyouts.
In the '90s, AOL was the king of dial-up Internet access, known for its ubiquitous CD-ROMs and "You've got mail" greeting in its inboxes. The company even managed to buy Time Warner at the height of the dot-com boom in 2001. But the companies never successfully melded, and as consumers moved to faster Internet services from cable and phone companies, AOL's main source of revenue dwindled.
Over the past several years, AOL has struggled to reinvent itself as a company focused on advertising and content, operating a variety of websites such as the popular tech blog Engadget. Since CEO Tim Armstrong was lured from Google Inc. to take the helm of AOL in April 2009, AOL has focused increasingly on the market for local content, helped by the purchase and expansion of its network of Patch local news sites.
The company has continued to acquire sites, too: Most recently, it paid $315 million for The Huffington Post as part of its efforts to become a go-to source for news and other content. That deal closed Monday.
Armstrong, speaking at a conference in New York, said the company has no immediate plans for further layoffs. But he added, "in our situation we don't have the luxury of long-term planning."
Armstrong said AOL will hire this year and will try to have more full-time journalists in its ranks to rely less on freelancers. He said about half the employees now have content-producing roles, and he wants to increase that to 70 percent.
Armstrong maintained his confidence about AOL's prospects for a comeback.
"AOL will turn around," he said. "No doubt about that."
But AOL's revenue is contributing less and less to the overall online advertising market in the U.S., eMarketer Inc. analyst David Hallerman said.
"If they're going to succeed, they're going to be succeeding as a smaller company," he said. "Therefore their success won't be as big."
Although Hallerman said he sees promise in the company's efforts to establish itself as a local content provider, he said the ads that run on these sites bring in less revenue than those on its more popular websites. That means AOL will have to make that up by drawing a lot of traffic.
Clayton Moran, an analyst with The Benchmark Co., said that the changes made since Armstrong took control are sensible and probably the best route the company could take.
But he said the changes "haven't shown a lot of financial progress. It's taking time for the changes to have an impact."
Shares of AOL fell 4 cents to $19.30 in afternoon trading Thursday.
Feds won't block AOL purchase of Huffington Post
Tue Mar 1, 1:20 pm ET
WASHINGTON – Federal officials do not intend to challenge AOL Inc.'s plans to buy online news hub Huffington Post, after concluding that the deal does not raise significant antitrust concerns.
The $315 million acquisition, announced last month, is part of America Online's attempt to rebuild itself as its legacy dial-up Internet business fades away. The Federal Trade Commission disclosed Tuesday that regulators at the FTC and Justice Department don't plan to block the purchase. It is expected to close later this year.
The deal will give AOL control of one of the top 10 current events and global news sites. Huffington Post has 25 million U.S. visitors each month. Co-founder Arianna Huffington will run AOL's expanding online media operations, which include popular technology sites Engadget and TechCrunch, local news site Patch.com and online mapping service MapQuest.
http://news.yahoo.com/s/ap/20110301/ap_on_hi_te/us_tec_aol_huffington_post_federal_review/print
DUKES BOY, sorry. was on vacation.
Didn't see your message until today.
Welcome. Not a big fan club here but not much excitement with stock price either.
mr harr id be glad to sit on your board and bring
potential fan club ,,, im into aol
AOL buying Huffington Post for $315M
By MICHAEL LIEDTKE, AP Technology Writer Michael Liedtke, Ap Technology Writer 22 mins ago
Online company AOL Inc. is buying online news hub Huffington Post in a $315 million deal that represents a bold bet on the future of online news.
The acquisition announced early Monday puts a high-profile exclamation mark on a series of acquisitions and strategic moves engineered by AOL CEO Tim Armstrong in an effort to reshape a fallen Internet icon. AOL was once the king of dial-up online access known for its ubiquitous CD-ROMs and "You've got mail" greeting in its inboxes.
Perhaps just as important as picking up a news site and ranks as one of the top 10 current events and global news sites, AOL will be adding Huffington Post co-founder and media star Arianna Huffington to its management team as part of the deal.
After the acquisition closes later this year, Huffington will be put in charge of AOL's growing array of content, which includes popular technology sites Endgadget and TechCrunch, local news sites Patch.com and online mapping service Mapquest.
The price that AOL is paying is "really just the hiring fee to get Arianna," said technology analyst Rob Enderle. "This is one of those out-of-left-field moves that actually makes a lot of sense. This could put AOL back on the map."
Armstrong, a former Google Inc. executive, has been trying to turn AOL into a go-to place for a wide variety of news since he was hired to turn around the company in April 2009 while it was still a part of Time Warner Inc. The makeover is designed to give Web surfers a reason to visit AOL's websites more frequently to help boost online ad sales.
At the same time, Armstrong has laid off hundreds of employees in an effort to boost AOL's financial performance and stock price. It has been a slog so far. AOL lost $782.5 million last year, largely because of accounting charges, and the company's stock is now worth slightly less than after it was spun out of Time Warner 14 months ago.
The deal "will create a next-generation American media company with global reach that combines content, community, and social experiences for consumers," Armstrong said in a statement announcing the deal.
Founded in 2005, Huffington Post is owned by Arianna Huffington, Kenneth Lerer and a group of other investors. The site attracts 25 million monthly visitors. AOL will pay $300 million of the purchase price in cash.
Putting Arianna Huffington into a position of power could eventually threaten Armstrong's job security if AOL still struggles, Enderle said.
"This is a gutsy move (Armstrong's) part because Arianna could end up running AOL," Enderle said.
In a blog post about the deal, Arianna Huffington praised Armstrong's vision for AOL and said they were on the same page as they discussed their ambitions for online news. "We were practically finishing each other's sentences," Huffington wrote about their discussions. She wrote that the deal was signed at the Super Bowl in Dallas, which she and Armstrong attended.
If it wins expected regulatory approval without any hitches, the deal will likely close in late March or early April.
Armstrong has been an aggressive deal maker since his arrival, but this marks by far the biggest acquisition of his tenure. Various published reports quoting unidentified people have also said he has talked to private equity firms about the possibility of trying to buy Yahoo Inc., another struggling Internet pioneer that remains a household name. Yahoo CEO Carol Bartz, though, has shown little interest in working with AOL.
AOL had just a 5.3 percent share of the U.S. display advertising revenue in 2010, down from 6.8 percent in 2009, according to eMarketer. Facebook, meanwhile, accounted for 13.6 percent of display revenue last year, up from 7.3 percent in 2009.
Huffington Post grew quickly from startup to online colossus and ranks as one of the top 10 current events and global news sites. Over time, it launched city-specific pages and developed a roster of sections such as food and books. The work of its 70-person paid staff is augmented by content from news outlets and 6,000 bloggers who write for free.
AOL to Announce Fourth Quarter and Full Year 2010 Financial Results
AOL Inc. (NYSE:AOL) today announced that it will hold its quarterly conference call to discuss fourth quarter and full year 2010 financial results on Wednesday, February 2, 2011 at 8:00 a.m. Eastern Time (ET). AOL will issue a press release reporting results before the conference call on Wednesday, February 2, 2011.
To listen to the call via webcast, please visit our website at http://ir.aol.com and click on the link titled “Q4 2010 AOL Inc. Earnings Conference Call” located under “Events & Presentations.” We recommend going to the website at least 15 minutes prior to the start of the webcast to register, download and install any necessary software. Instructions for accessing and registering for the webcast will be available at http://ir.aol.com beginning today. Visitors will also be able to listen to an archived copy of the webcast at http://ir.aol.com by clicking into “Events & Presentations” for up to 1 year following the event.
Parties in the United States and Canada should call toll-free (866) 713-8310 and other international parties should call (617) 597-5308. Participants should reference “AOL Call” when dialing into the live call. The conference call is scheduled to begin promptly at its appointed time, and all participants should be on the line by then.
Replays of the conference call will be available at 11:00 a.m. (ET) on Wednesday, February 2, 2011 and run until 11:59 p.m. (ET) on Wednesday, February 16, 2011. To hear the replay, U.S. and Canadian parties should call toll-free (888) 286-8010 and other international parties should call (617) 801-6888. The access code for the replay is 37458830.
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AOL INC. (AOL) www.aol.com/
Corporate Information corp.aol.com/corporate-information
AOL’s mission is: To inform, entertain and connect the world.
Stock Ticker: AOL common stock is traded on the NYSE under the symbol “AOL”.
For more information, please click here.
Our Brand
"The new AOL’s brand identity is one consistent logo revealed by ever-changing images".
Overview:
AOL is a leading global Web services company with an extensive suite of more than 80 premium branded and niche content sites. Approximately 80 percent of AOL’s content is originally produced by top editorial talent, including nine Pulitzer Prize Winners, seven Baseball Hall of Fame Voters, three Heisman Trophy Voters and two Pro Football Hall of Fame Voters. AOL has leading offerings in content, advertising and communications. The company is focused on building the highest quality content for consumers and the best products and services for its advertising and publishing partners, AOL operates the largest domestic advertising network, measured by reach.
Explore Our Brands
Content Brands:
AOL’s content brands include AOL.com, Moviefone, FanHouse, ParentDish, Asylum, Spinner, DailyFinance, BlackVoices, AOL Latino, PoliticsDaily, Engadget, WalletPop, Patch. and many others.
Content Sites
AOL owns and operates more than 80 content sites covering topics about which people are passionate. Our talented journalists produce content that is accurate, intriguing, impartial and fair.
Sixty months in a row and counting. That's how long Advertising.com has topped comScore's ranks of ad networks, reaching nearly 91 percent of the U.S. online population. And we have no intention of stepping down.
But reach is only one measure of a network's power. Advertising.com couples its scale with the most advanced optimization technology in the industry, AdLearn, making it possible to target any section of that massive audience with remarkable precision.
AdLearn analyzes your campaign's performance in real-time, and updates ad placements every hour based on your objectives, whether you're after clicks, conversions, volume or any other metric.
If your customers are online, they're on our network. We can help you – and your brand – find them.
advertising.aol.com/advertiser-solutions/advertisingcom
History:
AOL will mark its 25th anniversary in 2010.
The company was founded in 1985 as Quantum Computer Services and launched its first online service – Q-LINK – on the Commodore 64 the same year. The name “America Online” was originally proposed in an employee contest and the company officially became America Online, Inc., commonly called AOL, in 1991. In 2006, the company officially changed its name to AOL and began offering its content and services free of charge to Web users.
The AOL Running Man was introduced in 1996 when the icon was featured in the sign on process for the AOL service and then became the icon for AIM in 1997. In 2009, the Running Man was inducted into the Madison Avenue Advertising Walk of Fame and was also recognized in the Advertising Icon Museum.
corp.aol.com/corporate-information
Executives:
Tim Armstrong is AOL’s Chairman and CEO, responsible for setting the company’s strategy and overseeing the business and day-to-day operations. Prior to joining AOL in 2009, Armstrong was in charge of Google’s North American and Latin American advertising sales, marketing and operations teams.
Armstrong joined AOL in April 2009 from Google, where he oversaw the company’s North American and Latin American advertising sales, marketing and operations teams as President of The Americas Operations and worked with some of the world's most widely recognized brands and advertising agencies. His tenure at Google covered the scaled launch of Google's advertising efforts and defined many of the operating structures that supported Google's global expansion. Armstrong was a member of Google's Operating Committee, the company’s executive team.
Prior to joining Google, Armstrong was Vice President of Sales and Strategic Partnerships for Snowball.com. Before that, he served as Director of Integrated Sales and Marketing at Starwave's and Disney's ABC/ESPN Internet Ventures, working across the companies' Internet, TV, radio and print properties. At the start of his career, Armstrong co-founded and ran a newspaper based in Boston, Mass. and later joined IDG, where he launched its first consumer Internet magazine, I-Way.
Armstrong is on the boards of the Interactive Advertising Bureau (IAB), the Advertising Council and the Advertising Research Foundation, and is a trustee at Connecticut College and Lawrence Academy.
He is a graduate of Connecticut College, with a double major in economics and sociology.
To learn more about AOL’s senior management, please click here.
Board of Directors:
AOL’s Board of Directors includes leaders in Internet, media, entertainment and marketing, as well as finance. To learn more, please click here.
Headquarters
AOL Inc.
770 Broadway
New York, NY 10003
(212) 652-6400
Offices:
In addition to New York City, AOL has offices in Dulles, Va., Mountain View, San Francisco, Denver, Chicago, Boston, Baltimore, and Detroit, among other locations. Internationally, office locations include Toronto, Hamburg, Dublin, Paris, London, Bangalore and Tel Aviv.
Latest Investor News: corp.aol.com/investor
"AOL’s business spans online content, products and services for consumers, publishers and advertisers. We’re one of the largest producers of quality digital content and one of the world’s leading sellers of premium display advertising.
Shareholder Inquiries
AOL Investor Relations: 1-877-AOL-1010 (1-877-265-1010) Send email.
Nasdaq.com: AOL INC. www.nasdaq.com/asp/quotes_sec.asp
Securities and Exchange Commission: AOL INC. tinyurl.com/y9ow4gx
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