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AOL Revenue Climbs 1.9%, Purchases Adap.tv For $405M

|Includes:AOL Inc. (AOL)

Originally published at www.seclive.com

AOL Inc. (NYSE:AOL) announced its financial results for the second quarter of fiscal year 2013, reporting a 1.9% revenue increase to $541.3M. AOL also announced it has agreed to purchase Adap.tv Inc., a video advertising company, in a cash and stock deal worth $405M. AOL will pay approximately $322M in cash while also contributing $83M in stock to complete the purchase. The company reported earnings of $28.5M with $0.35 earnings per share, a stark contrast to last year this quarter earnings of $970.8M and $10.17 per share, though the vast difference is explained by an asset disposal attributing gains of $9.93 per share. Internet subscription revenue dropped 5.4% to $166M while advertising revenues increased 6.9% to $361.2M. Regarding the purchase agreement for Adap.tv, Chairman and CEO Tim Armstrong remarked that AOL is taking advantage of the presented opportunity with Adap.tv as the online video and TV business are evolving.

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Stocks: AOL