LONDON (Brand Republic) - In a bid to boost its share value, AOL Time Warner is to buy back up to $5bn of its stock over two years, beginning in February.
AOL Time Warner鈥檚 share price of $47.77 remains well below the level it reached prior to the announcement of the merger in January 2000, when it hit a 52-week high of $74.62.
The board of directors at the newly merged company took the decision when it met for the first time yesterday.
Gerald M Levin, chief executive officer of AOL Time Warner, said, 鈥淭hanks to the strong growth prospects for our company, we鈥檙e able not only to continue to invest in our world-class businesses but use a portion of our growing financial capacity to buy back stock at a time when we believe our shares are undervalued.鈥