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Tuesday September 2, 2014

AOL Addresses Stockholder Concerns

Image representing AOL as depicted in CrunchBase

Image via CrunchBase

In response to a letter from Starboard Value LP, which owns approximately 4.5% of AOL‘s outstanding shares, AOL released a statement this week reaffirming  its commitment to creating long-term sustainable growth for its shareholders. The letter criticized the current strategies of AOL CEO, Tim Armstrong, which have incurred losses of over $500 million before interest, taxes, deprecation and amortization.

Concerns from Starboard have already been expressed by many of the AOL’s stockholders. Nevertheless, the company remains confident that it will be able to achieve a successful turnaround, as they have moved from what was once an Internet-access service into an ad-supporting digital media business, acquiring sites such as Huffington Post and TechCrunch.

The Wall Street Journal