|TECHNOLOGY | August 27, 2012, 7:41 a.m. ET|
AOL Announces Special Dividend, $600 Million Stock Buyback
By MELODIE WARNER
AOL Inc. will return $1.1 billion to shareholders through a special dividend and said it will repurchase $600 million of stock under an accelerated stock-repurchase agreement with Barclays Bank PLC.
"Today's announcement underscores AOL's commitment to delivering value for our shareholders," Chairman and Chief Executive Tim Armstrong said. "AOL remains committed to creating and unlocking value for all shareholders through smart execution and disciplined management of our asset portfolio."
AOL had unveiled plans earlier this month to buy back an additional $550 million in stock after a weak response to its Dutch auction tender offer. The move was part of its efforts to return to shareholders all of the proceeds of its $1.1 billion patent sale to Microsoft Corp. AOL has said it needs to employ several steps and potentially several methods of returning the money from the patent sale to limit the tax impact.
AOL on Monday said it expects to pay a $5.15 special cash dividend on Dec. 14 to shareholders of record at the close of business on Dec. 5.
The company will use its previously approved share-repurchase authorization and an incremental $10 million authorized on Aug. 26 for the Barclays deal.
AOL had about 94 million shares outstanding as of July 27.
Write to Melodie Warner at firstname.lastname@example.org