AOL, Inc. (AOL) announced a new stock repurchase program of $550 million. The company still has $40.8 million of stock unrepurchased in last stock repurchase program. Adding these two programs together, it totally account for about 20% of the current market value. AOL pointed out that since August 2011 it has repurchased $209 million of ordinary shares.
AOL CEO, Tim Armstrong, said in a statement that their outstanding operational and financial performance is creating long-term value for their shareholders and they will return 100% of the patent trading income to shareholders. AOL said that it had signed a patent license agreement with Microsoft at the beginning of this year, and got $1 billion in revenue. It will adopt various ways and by several steps to return the patent trading income to the shareholders and has promised to return all the income until the end of this year, meanwhile not to impact the company’s tax contribution.
AOL stock price rose 3.59%, or $1.13, to end at $32.63, on a volume of 2.46 million shares versus the daily average of 2.04 million shares. AOL stock price rose to as high as $32.65 in the trading session, the new high record over the past 52 weeks. The current AOL stock price is above its 50-day and 200-day moving averages, which are standing at $28.07 and $20.72, respectively. AOL has a market cap of $3.07 billion.