Investigation Overview
May 18, 2015 (Shareholders Foundation) - An investigation on behalf of investors, who currently hold shares of AOL, Inc. (NYSE:AOL), was announced concerning whether the takeover of AOL, Inc. by Verizon Communications Inc for $50.00 per share is unfair to NYSE:AOL stockholders.
The investigation by a law firm concerns whether certain officers and directors of AOL, Inc. breached their fiduciary duties owed to NYSE:AOL investors in connection with the proposed acquisition.
On May 12, 2015, Verizon Communications Inc. (NYSE, Nasdaq: VZ) announced the signing of an agreement to purchase AOL Inc. (NYSE: AOL) for $50 per share at an estimated total value of approximately $4.4 billion.
However, given that at least one analyst has set the high target price for NYSE:AOL shares at $67.00 per share, the investigation concerns whether the offer is unfair to NYSE:AOL stockholders. More specifically, the investigation concerns whether the AOL Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.
AOL, Inc. reported that its annual Total Revenue rose from over $2.31 billion in 2013 to over $2.52 billion in 2014 and that its respective Net Income increased from $92.40 million to $125.60 million. Shares of AOL, Inc. (NYSE:AOL) grew from $36.36 per share in June 2014 to as high as $49.62 per share in January 2015.