Comments on: AOL to Spin Off Dec. 9, Begin Trading Dec. 10 (Plus Full Press Release) http://kara.allthingsd.com/20091116/aol-to-spin-off-december-9-begin-trading-december-10/ Fri, 10 Feb 2012 13:33:41 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: FateMaster Tech News » AOL: Puff Daddy Parties and Cockroaches on NPR [BoomTown] http://kara.allthingsd.com/20091116/aol-to-spin-off-december-9-begin-trading-december-10/#comment-20683 FateMaster Tech News » AOL: Puff Daddy Parties and Cockroaches on NPR [BoomTown] Wed, 09 Dec 2009 14:02:26 +0000 http://kara.allthingsd.com/?p=20661#comment-20683 [...] is winging across the country right now to New York City to attend, among other things, the analog version of the AOL spin-off from Time Warner [...] [...] is winging across the country right now to New York City to attend, among other things, the analog version of the AOL spin-off from Time Warner [...]

]]> By: AOL: Puff Daddy Parties and Cockroaches on NPR [BoomTown] | TECHNICK http://kara.allthingsd.com/20091116/aol-to-spin-off-december-9-begin-trading-december-10/#comment-20678 AOL: Puff Daddy Parties and Cockroaches on NPR [BoomTown] | TECHNICK Wed, 09 Dec 2009 13:11:51 +0000 http://kara.allthingsd.com/?p=20661#comment-20678 [...] is winging across the country right now to New York City to attend, among other things, the analog version of the AOL spin off from Time Warner [...] [...] is winging across the country right now to New York City to attend, among other things, the analog version of the AOL spin off from Time Warner [...]

]]> By: AOL: Puff Daddy Parties and Cockroaches on NPR | Kara Swisher | BoomTown | AllThingsD http://kara.allthingsd.com/20091116/aol-to-spin-off-december-9-begin-trading-december-10/#comment-20677 AOL: Puff Daddy Parties and Cockroaches on NPR | Kara Swisher | BoomTown | AllThingsD Wed, 09 Dec 2009 13:11:09 +0000 http://kara.allthingsd.com/?p=20661#comment-20677 [...] is winging across the country right now to New York City to attend, among other things, the analog version of the AOL spin off from Time Warner [...] [...] is winging across the country right now to New York City to attend, among other things, the analog version of the AOL spin off from Time Warner [...]

]]> By: Meet the New AOL: “Aol.” | Peter Kafka | MediaMemo | AllThingsD http://kara.allthingsd.com/20091116/aol-to-spin-off-december-9-begin-trading-december-10/#comment-19711 Meet the New AOL: “Aol.” | Peter Kafka | MediaMemo | AllThingsD Mon, 23 Nov 2009 02:51:23 +0000 http://kara.allthingsd.com/?p=20661#comment-19711 [...] new AOL will differ than the old one in several ways: New boss, smaller headcount, different owners. So it gets a new logo, too. This one will look awfully familiar, and if you’re not paying [...] [...] new AOL will differ than the old one in several ways: New boss, smaller headcount, different owners. So it gets a new logo, too. This one will look awfully familiar, and if you’re not paying [...]

]]> By: FateMaster Tech News » Weekend Update 11.21.09- The House of Cards Edition [Digital Daily] http://kara.allthingsd.com/20091116/aol-to-spin-off-december-9-begin-trading-december-10/#comment-19671 FateMaster Tech News » Weekend Update 11.21.09- The House of Cards Edition [Digital Daily] Sat, 21 Nov 2009 22:01:07 +0000 http://kara.allthingsd.com/?p=20661#comment-19671 [...] began Monday with some of the hard facts from the pending AOL-TimeWarner (TWX) split. Stock issued for the post-spinoff AOL places the company’s total implied value at [...] [...] began Monday with some of the hard facts from the pending AOL-TimeWarner (TWX) split. Stock issued for the post-spinoff AOL places the company’s total implied value at [...]

]]> By: Weekend Update 11.21.09- The House of Cards Edition | Drake Martinet | Digital Daily | AllThingsD http://kara.allthingsd.com/20091116/aol-to-spin-off-december-9-begin-trading-december-10/#comment-19664 Weekend Update 11.21.09- The House of Cards Edition | Drake Martinet | Digital Daily | AllThingsD Sat, 21 Nov 2009 20:32:00 +0000 http://kara.allthingsd.com/?p=20661#comment-19664 [...] began Monday with some of the hard facts from the pending AOL-TimeWarner (TWX) split. Stock issued for the post-spinoff AOL places the company’s total implied value at [...] [...] began Monday with some of the hard facts from the pending AOL-TimeWarner (TWX) split. Stock issued for the post-spinoff AOL places the company’s total implied value at [...]

]]> By: AOL seeks to shrink workforce by a third after spin-off | cars burner http://kara.allthingsd.com/20091116/aol-to-spin-off-december-9-begin-trading-december-10/#comment-19628 AOL seeks to shrink workforce by a third after spin-off | cars burner Fri, 20 Nov 2009 09:56:43 +0000 http://kara.allthingsd.com/?p=20661#comment-19628 [...] severance packages to volunteers who step forward between Dec. 4 and Dec. 11. (The spin-off will take place Dec. 9.) If the reduction can’t be achieved solely through voluntary departures, the remainder will [...] [...] severance packages to volunteers who step forward between Dec. 4 and Dec. 11. (The spin-off will take place Dec. 9.) If the reduction can’t be achieved solely through voluntary departures, the remainder will [...]

]]> By: AOL Spins Off from Time Warner on Dec. 9 | AdVantage SEO http://kara.allthingsd.com/20091116/aol-to-spin-off-december-9-begin-trading-december-10/#comment-19472 AOL Spins Off from Time Warner on Dec. 9 | AdVantage SEO Wed, 18 Nov 2009 02:33:44 +0000 http://kara.allthingsd.com/?p=20661#comment-19472 [...] Warner and AOL has officially announced the details of their separation.  According to the official press release, come Dec. 9, 2009 Time Warner stockholders on record as of November 27, 2009 will receive one [...] [...] Warner and AOL has officially announced the details of their separation.  According to the official press release, come Dec. 9, 2009 Time Warner stockholders on record as of November 27, 2009 will receive one [...]

]]> By: Robert Heath http://kara.allthingsd.com/20091116/aol-to-spin-off-december-9-begin-trading-december-10/#comment-19471 Robert Heath Tue, 17 Nov 2009 23:04:46 +0000 http://kara.allthingsd.com/?p=20661#comment-19471 Sorry, Kara, but Henry Blodgett's <a href="http://www.businessinsider.com/henry-blodget-aol-spinoff-valuation-is-only-35-billion-2009-11" rel="nofollow">calculation</a> of AOL's value that you link to is apparently based on Erick Schonfeld's <a href="http://www.techcrunch.com/2009/11/16/aol-spin-off-december-7-worth-3-4-billion/" rel="nofollow">TechCrunch post</a>, and they both make the invalid assumption that the distribution ratio of AOL stock to Time-Warner shareholders has something to do with value. The selection of the distribution ratio only determines the number of AOL shares that will be outstanding, but says nothing about their expected price. You need both a share count and a share price to calculate value. While the Time-Warner board undoubtedly has its own guess how AOL will trade, the selection of the distribution ratio tells us nothing about AOL's value. We'll know more when AOL shares begin trading on a when-issued basis on Nov. 24. As for AOL's value last January, it was in fact somewhere between $2.5 and $3.5 billion, as calculated <a href="http://roberthheath.blogspot.com/2009/07/aol-rip.html" rel="nofollow">here</a> (see Notes 1 and 2. Your valuation ($3.2 billion) is a reasonable estimate, but for the wrong reasons. Sorry, Kara, but Henry Blodgett’s calculation of AOL’s value that you link to is apparently based on Erick Schonfeld’s TechCrunch post, and they both make the invalid assumption that the distribution ratio of AOL stock to Time-Warner shareholders has something to do with value.

The selection of the distribution ratio only determines the number of AOL shares that will be outstanding, but says nothing about their expected price. You need both a share count and a share price to calculate value.

While the Time-Warner board undoubtedly has its own guess how AOL will trade, the selection of the distribution ratio tells us nothing about AOL’s value. We’ll know more when AOL shares begin trading on a when-issued basis on Nov. 24.

As for AOL’s value last January, it was in fact somewhere between $2.5 and $3.5 billion, as calculated here (see Notes 1 and 2.

Your valuation ($3.2 billion) is a reasonable estimate, but for the wrong reasons.

]]> By: AOL To Go Public On December 10th Without TMZ In The Portfolio http://kara.allthingsd.com/20091116/aol-to-spin-off-december-9-begin-trading-december-10/#comment-19433 AOL To Go Public On December 10th Without TMZ In The Portfolio Tue, 17 Nov 2009 03:28:13 +0000 http://kara.allthingsd.com/?p=20661#comment-19433 [...] AOL was trading in the NYSE before it merged with Time Warner back in the day too. The full press release is available after the [...] [...] AOL was trading in the NYSE before it merged with Time Warner back in the day too. The full press release is available after the [...]

]]> By: AOL Spins Off from Time Warner on Dec. 9 | Search Engine Journal http://kara.allthingsd.com/20091116/aol-to-spin-off-december-9-begin-trading-december-10/#comment-19428 AOL Spins Off from Time Warner on Dec. 9 | Search Engine Journal Tue, 17 Nov 2009 01:39:22 +0000 http://kara.allthingsd.com/?p=20661#comment-19428 [...] Warner and AOL has officially announced the details of their separation.  According to the official press release, come Dec. 9, 2009 Time Warner stockholders on record as of November 27, 2009 will receive one [...] [...] Warner and AOL has officially announced the details of their separation.  According to the official press release, come Dec. 9, 2009 Time Warner stockholders on record as of November 27, 2009 will receive one [...]

]]> By: AOL Set to Go It Alone ~ Revelations From An Unwashed Brain http://kara.allthingsd.com/20091116/aol-to-spin-off-december-9-begin-trading-december-10/#comment-19425 AOL Set to Go It Alone ~ Revelations From An Unwashed Brain Tue, 17 Nov 2009 00:50:44 +0000 http://kara.allthingsd.com/?p=20661#comment-19425 [...] story from AllThingsD give more of the nitty gritty on the move - AOL will officially be spun off from Time Warner on [...] [...] story from AllThingsD give more of the nitty gritty on the move – AOL will officially be spun off from Time Warner on [...]

]]> By: TechKive » Blog Archive » AOL To Spin Off December 9, Begin Trading December 10 (Plus Full Press Release) [BoomTown] http://kara.allthingsd.com/20091116/aol-to-spin-off-december-9-begin-trading-december-10/#comment-19416 TechKive » Blog Archive » AOL To Spin Off December 9, Begin Trading December 10 (Plus Full Press Release) [BoomTown] Mon, 16 Nov 2009 22:33:44 +0000 http://kara.allthingsd.com/?p=20661#comment-19416 [...] the rest here: AOL To Spin Off December 9, Begin Trading December 10 (Plus Full Press Release) [BoomTown] Share and [...] [...] the rest here: AOL To Spin Off December 9, Begin Trading December 10 (Plus Full Press Release) [BoomTown] Share and [...]

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