AOL announces $250 million share buyback
AOL (NYSE:AOL) announced Thursday its board of directors has approved a $250 million share repurchase program, sending its shares up.
"This announcement highlights both our strong balance sheet and free cash flow generation," said CFO Artie Minson.
"We believe this is a unique opportunity to invest in our company."
The global media company said the repurchases may occur at any time over the next year, and may be made on the open market, in block trades or otherwise.
The program, which may also include derivates, can be suspended or discontinued at any time.
News of the repurchase program comes days after AOL revealed a less-than-stellar second quarter. The company narrowed its net loss to $11.8 million, or $0.11 loss per share, and posted revenues of $542.2 million, 8.4% less than a year ago.
After news of its poor results, the New York-based company's stock plunged nearly 20%.
But today's news pushed investors to send the company's share price up 13.6%, to trade at $11.61 per share as of 3:44 pm EDT on Thursday.
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