Those in communications who are still back there in the world of catchy blogs whose posts go viral might value where AOL is, especially since content queen Arianna Huffington came abroad. However that's not where the value will come in the future. And, according to Starboard, a fund which owns 5.2% of the stock, that's not where the corporation's focus should be. Starboard is demanding that AOL pay more attention to its Intellectual Property, which the fund values at $1 billion.
If Starboard gets heard and the company changes its strategic direction, the stock may do well, eventually. If Starboard is ignored, then the stock can undergo the night of the shorts.
I analyze AOL's positioning for the financial information company Motley Fool. Here you can read all about it.
Comments