AOL To Buy Back $250 Million of Declining Stock

 By 
Lauren Indvik
 on 
AOL To Buy Back $250 Million of Declining Stock
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Before the announcement, AOL was valued at $11.03 per share, down 36% since the company disclosed Q2 2011 earnings Wednesday.

Despite ad revenues being up for the first time since 2008, the company said that ad gains had flattened over the summer and revised its profit expectations downward from the beginning of the quarter.

Investors still aren't sure that AOL's efforts to evolve from an Internet subscription service -- which, though declining, still makes up a third of the company's revenues -- into an ad-based media company will end profitably.

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The announcement has at least succeeded in stemming the stock's freefall for the short term; AOL shares have since shot up to $11.94 apiece, up 16.44% from the open.

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