In March last year, AOL and Bertelsmann signed an agreement as part of their global alliance. Under the agreement, Bertelsmann could force AOL to buy up to 80% of its 49.5% stake in the ISP.
However, in October this year, AOL investors began panic selling AOL shares amid fears that the internet giant might have to pay more than the stake's market value, which at that time was between £1.4bn and £3.4bn.
Pittman sought to reassure investors at a conference in New York yesterday by dismissing concerns that the price AOL will pay -- expected to be between £4.8bn and £5.8bn in cash and shares -- will be too high.
Pittman claims AOL would get the company for around half its estimated value, as Bertelsmann provided most of the financing to build the venture.
If you have an opinion on this or any other issue raised on Brand
Republic, join the debate in the Read more
_1.jpg)
.jpg)
