AOL Execs Meet With Bankers to Discuss the Company's Future
Amidst the tumbling stock prices and the rumor mill that AOL might soon open up for auction, the company's executives have met with bankers recently to discuss the company's future.
Sources familiar with the meeting suggest that AOL might, in fact be going private which would allow the company to streamline itself without the inspection of its shareholders and the executives had discussed a price for the transaction in their meeting with the bankers.
AOL stocks tumbled when it separated itself from Time Warner in December 2009. On its first day of separation AOL stocks opened at $25.54 and closed at $15.31. Their stock value has fallen for a total of $1 billion since the separation. Speculations suggest that KKR, a private firm could be a likely buyer of AOL. Spokesperson for KKR however declined to comment on the matter.
AOL has acquired the likes of Huffington Post and TechCrunch recently, the former for $315 million and the latter which some say for $25 million to boost its revenue, but has not managed to satisfy its deficit as its major business of providing internet dial-up connections fades in to the background which has made investors critical of the CEO Tim Armstrong and his policies. Some suggest that the CEO needs more time to change the fortunes of the company but investors are getting more and more impatient.
“It doesn’t help to be doing a turnaround in public,” commented a person, familiar with the situation at AOL. “They could be bolder and take more risks.”
SOURCE: NewYork Post
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