Sina Technology News, February 25th at midnight Beijing time, AOL shareholder Starboard Value LP issued a statement on Friday expressing growing dissatisfaction with the current direction of the company's board. As a result, they have nominated five director candidates to join AOL's board of directors. These nominees include Jeffrey Smith, co-founder and CEO of Starboard. This fund increased its stake in AOL at the end of last year, raising its ownership from 4.5% to 5.2%. The five individuals include Jeffrey Smith, who will ensure that AOL evaluates all strategic options with an "open mind and urgent attitude."
In December 2009, AOL split from Time Warner. Currently, AOL CEO Tim Armstrong is striving to drive the company back to revenue growth. Over the past four quarters, AOL’s display advertising sales have been increasing. In the fourth quarter, the company's revenue declined by 3%, and net profit fell by 66%, but the decline was less than market expectations.
Smith stated: "We are puzzled by AOL's narrow-minded approach to strategic evaluations. AOL should leverage its portfolio of over 800 internet technology patents, which could generate more than $1 billion in licensing revenue." Starboard plans to nominate new directors at AOL's annual shareholders meeting scheduled for May.
AOL said: "The company has had several discussions with Starboard, giving them the opportunity to assist in improving the composition and size of AOL's board, but Starboard has clear goals and is unwilling to achieve their intentions through this channel to promote the increase in shareholder value."
AOL's stock closed down 1.1% on Friday at $18.23. The stock has risen 21% since the beginning of the year. (Zheng Jun)
[Relevant reports: Reports say AOL shareholder Starboard will nominate new directors today; AOL Q4 net profit $22.8 million, down 66% year-on-year; Investors write to AOL board: Want to cooperate to adjust company strategy; AOL's TechCrunch CEO Heather Harde resigns (with pictures); Weibo recommendation | Sina Technology Official Weibo]