AOL Steps into a Shareholder Storm
Yesterday, activist fund Starboard Value sent correspondence to AOL (NYSE:AOL) management saying the firm’s attempts to become an ad-supported online media entity are killing shareholder value. Starboard calls AOL, whose shares are down 38% YTD, “deeply undervalued” and says something must be done now to stop investing “good money after bad.”
AOL’s rebuttal to Starboard Value’s letter was a hackneyed defense of the company’s performance. The response probably won’t sway those who support the activist fund’s push for big changes at AOL.
Here’s how AOL shares are trading on the news:
AOL, Inc. (NYSE:AOL): AOL shares recently traded at $15.09, up $0.28, or 1.89%. They have traded in a 52-week range of $10.06 to $24.91. Volume today was 1,800,485 shares versus a 3-month average volume of 1,966,430 shares. The company’s trailing P/E is 28.63, while trailing earnings are $0.53 per share. Get the most recent company news and stock data here >>