Tim Armstrong will pocket $59 million from AOL sale

Tim ArmstrongREUTERS/Jim UrquhartCEO of AOL Tim Armstrong attends the Allen & Co Media Conference in Sun Valley, Idaho July 12, 2012.

Tim Armstrong will walk away with $US59 million after selling AOL to Verizon, an SEC filing shows.

Earlier this month, Verizon announced plans to purchase AOL for $US4.4 billion. Armstrong will stay with the company to run the AOL business, which will operate as a division of Verizon.

According to the filing, Armstrong will receive a “Founders’ Incentive Award” of restricted stock units with a value equivalent to 1.5% of AOL’s market value when the merger is consummated. At today’s price, that’s worth $US59 million.

A February regulatory filing says Armstrong holds 1.48 million shares of AOL, or 1.9% of the company.

AOL’s brands include The Huffington Post, TechCrunch, and Engadget. These companies will not spin off, Armstrong said earlier this month.

Verizon is paying for AOL with a cash and short-term debt blend. The deal is expected to close sometime this summer.

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