logo
  

AOL Q2 Profit Slumps; To Buy Adap.tv - Quick Facts

Web service company AOL Inc. (AOL) reported a sharp plunge in second-quarter net income attributable to shareholders to $28.5 million, or $0.35 a share, from last year's $970.8 million, or $10.17 a share. On average, 16 analysts polled by Thomson Reuters expected earnings per share of $0.32 for the quarter. Analysts' estimates typically exclude one-time items.

AOL's second-quarter 2012 operating income, net income and per-share earnings were favorably impacted by $1.04 billion, $970 million and $10.16, respectively resulting from its patent transaction with Microsoft. Excluding this impact, operating income, net income and EPS grew significantly.

The firm clocked total revenues of $541.3 million in the quarter, versus $531.1 million a year earlier. Analysts estimated revenues of $539.66 million for the quarter.

In addition, AOL reached an agreement to acquire Adap.tv, Inc., a global, programmatic video advertising platform for the world's largest brands, agencies, and publishers, for AOL common shares with an aggregate value of about $83 million and estimated cash consideration of some $322 million, subject to adjustment for working capital and reduction for indebtedness and transaction expenses of Adap.tv that remain unpaid as of closing. AOL expects to close the acquisition in the third quarter of 2013.

On July 1, 2013, AOL's board authorized a $150 million share repurchase, bringing the company's remaining repurchase authorization to $200 million.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Google, owned by Alphabet Inc., plans to merge its teams working on Maps products and the mapping service Waze with effect from December 9, reports said. The decision to consolidate processes comes as the search giant is facing pressure to streamline operations and cut costs. The restructuring is expected to reduce overlapping work across the Waze and Maps products. The Pentagon announced that up to $9 billion worth of cloud-computing contracts were awarded to Google, Oracle, Amazon, and Microsoft. In a statement, the U.S. Department of Defense said, "The purpose of this contract is to provide the Department of Defense with enterprise-wide, globally available cloud services across all security domains and classification levels..." Juul Labs, an e-cigarette maker, said it has reached settlements with more than 5,000 vaping lawsuits in the United States. The cases were related to personal injury, consumer class action, government entity, and Native American tribes. In a statement, the company said it cannot disclose the settlement amount at this time as part of the settlement and court process.
Follow RTT