Another brutal day for AOL shareholders, as the stock tanked 16%.
AOL’s long-suffering shareholders were recently thrown a lifeline when word arrived that the company was in talks with private-equity firms.
Those reports sent the clobbered stock soaring from ~$10 to ~$15.
But now it’s weeks later and there’s been no further word, so the deal-hungry fast money is apparently throwing in the towel.
And then there was that talk after Yahoo CEO Carol Bartz got canned that AOL might merge with Yahoo. The talk was quickly squashed–Yahoo recoiled in horror at the idea–but AOL’s stock still got a lift.
But now this morning Arianna Huffington appears to have suggested that there’s no possibility of a merger (as reported by Shira Ovide in the WSJ):
“I almost feel like there’s a reverse correlation between rumours and reality,” the new AOL executive told the All Powerful Sharon Waxman of TheWrap. “When people want something to happen and they care, they’re careful about leaks,” Huffington said.
And that helped the stock crash again.
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