Earlier this year, AOL struck a deal with Microsoft for the latter to buy more than 800 of its patents and license 300 additional patents and applications for $1 billion in cash, money the company has repeatedly promised to return to shareholders.
The company says it has now reached a $600 million fixed-dollar collared ‘Accelerated Stock Repurchase Agreement’ with Barclays Bank and received authorization for a ‘special’ one-time cash dividend of $5.15 per share.
AOL will pay the $600 million at the beginning of the agreement and expects to receive shares throughout the remainder of the year. The company will get substantial majority of the shares underlying the transaction before year-end, including approximately 4 million shares that Barclays will deliver to AOL on August 30, 2012.
The dividend of $5.15 per share will be payable on December 14, 2012.
For your background: AOL was spun off as from Time Warner and became an independent public company back in December 2009.
Celebrate Pride 2020 with us this month!
Why is queer representation so important? What's it like being trans in tech? How do I participate virtually? You can find all our Pride 2020 coverage here.