AOL announces final plans for $1.1 billion shareholder payoff
The company says that it's entering into a $600 million Stock Repurchase Agreement with Barclay's Bank and announcing a special cash dividend.
AOL shareholders are well on their way to collecting that $1.1 billion the company promised them.
AOL announced today that it has entered into a Stock Repurchase Agreement with Barclays Bank that will see the company buy back $600 million worth of shares. According to AOL, it will receive shares through the rest of the year, including 4 million that it'll get from Barclays by the end of the month.
According to AOL, Barclays will buy up its shares on the open market with the proceeds provided in the agreement.
The share repurchase agreement is part of a plan AOL announced back in June related to a $1.06 billion patent sale to Microsoft. The company said that all of the proceeds of that sale, which included AOL handing over some 800 patents and related applications, would be given back to shareholders.
A stock repurchase agreement can at times be a boon for shareholders, since they can often send prices on the rise.
Far more of a boon to shareholders, AOL said today that it's also awarding a one-time, cash dividend of $5.15 to shareholders of record on December 5. The company plans to pay the dividend on December 14.
Being an AOL shareholder hasn't been all that bad. Since the beginning of the year, the company's stock is up 123 percent. In early trading today, the company's shares have risen 2 percent to $33.64.