|| Author: Kim LaCapria|Tags:

AOL to Buy Back $250M in Stock After Selloff

After shares of AOL stock lost more than a third of their value this week, the company announced a plan to buy back $250 million in AOL stocks in order to protect the stock’s price.

AOL CEO Tim Armstrong confirmed the stock buyback plan on Thursday- the repurchasing of AOL stock by AOL, which started Wednesday, will continue for 12 months. It is believed that high-cost forays into AOL’s media business have hit the company’s bottom line hard, including the high-profile and high-price tag acquisition of the Huffington Post earlier this year as well as hefty investments made into the hyperlocal Patch property as it moves into communities across the United States.

Of the decision, AOL’s CFO Artie Minson commented:

“This announcement highlights both our strong balance sheet and free cash flow generation… We believe this is a unique opportunity to invest in our company.”

On news of the year-long buyback plan, shares of AOL rose 13% in late-day trading to $11.38.