Billionaire George Soros isn’t impressed with the job AOL CEO Tim Armstrong has done since Time Warner spun AOL off last December.Last quarter, Soros Fund Management LLC sold more than half its ~$12 million stake in AOL, MarketWatch reports.
Meanwhile, the fund maintained its 3.5 million share position in AOL’s closest rival, Yahoo.
That has to burn AOL management a bit, since Yahoo seems to be intent on copying AOL’s media strategy.
Months after AOL launched a platform for freelancers called Seed.com, Yahoo bought it’s own – Associated Content. Yahoo, like AOL, is also investing heavily in original content sites and local programming.
So why is Soros sticking with Yahoo and not AOL? There could be a million reasons – including arcane stuff like taxes and basis points – but here’s a quick few guesses.
- Yahoo has lots of cash.
- Yahoo has valuable Asian assets.
- AOL is horrible at the earnings expectations game.
- Even AOL advertising revenues still depend way too much on a dwindling base of subscribers.
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