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 (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