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AOL Revenue Climbs 1.9%, Purchases For $405M

|Includes: AOL Inc. (AOL)

Originally published at

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 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, Chairman and CEO Tim Armstrong remarked that AOL is taking advantage of the presented opportunity with as the online video and TV business are evolving.

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