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Billionaire George Soros isn't impressed with the job Aol (AOL) CEO Tim Armstrong has done since Time Warner (NYSE:TWX) spun Aol off last December.

Last quarter, Soros Fund Management LLC sold more than half its ~$12 million stake in Aol, MarketWatch reports.

Meanwhile, the fund maintained its 3.5 million share position in Aol's closest rival, Yahoo (NASDAQ:YHOO).

That has to burn Aol management a bit, since Yahoo seems to be intent on copying Aol's media strategy.

Months after Aol launched a platform for freelancers called Seed.com, Yahoo bought its own – Associated Content. Yahoo, like Aol, is also investing heavily in original content sites and local programming.

So why is Soros sticking with Yahoo and not Aol? There could be a million reasons – including arcane stuff like taxes and basis points – but here's a quick few guesses.

  • Yahoo has lots of cash.
  • Yahoo has valuable Asian assets.
  • Aol is horrible at the earnings expectations game.
  • Even Aol advertising revenues still depend way too much on a dwindling base of subscribers.



Disclosure: No Positions

Source: Why Is Soros Sticking With Yahoo and Not Aol?