Thursday, August 11, 2011

Could AOL Get Bought Out?

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In the last month, the stock of AOL has declined just over 50 percent.
But that drop is not just due to the turbulent markets of late. AOL stock had a 50 percent drop over the last six months, a 57 percent decline since the beginning of the year and 56 percent plunge since it went public in late 2009.
Which is why some in the industry at both private equity firms and bigger companies have noted to me that the price of AOL might have gotten low enough for a very cheap takeover.
“You have to look, even with all the problems they have been struggling to fix,” said one person, who also underscored the advertising and other challenges the AOL faces. “But it is so inexpensive, it’s also an interesting idea.”
Said another large investor: “It’s almost free, given its cash on hand.”

Posted via email from Inspiration

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