AOL's Stock Falls Amid Huffington Post Deal
The company’s market value has since the start of the month declined by the $315 million that it is spending on the acquisition.
NEW YORK – AOL’s stock market value has dropped about $315 million since Feb. 1 – the same amount it is paying to acquire the Huffington Post, the New York Post reported Wednesday.
The stock has fallen from $23.85 to $20.89 as of Tuesday’s stock market close. It was down slightly in early Wednesday trading as well. The deal was announced late Sunday/early Monday and pushed AOL shares down as much as 4 percent on Monday alone.
The decline this week has come as Wall Street has called the price tag for the deal high.
"I thought, from a financial valuation, it is a bit of a stretch," Benchmark Company analyst Clayton Moran told the Post.
Meanwhile, observers are wondering if Yahoo, which last year spent $100 million to acquire Associated Content, will make a deal of its own. Former tech analyst Henry Blodget's Business Insider may be in Yahoo's sights, the Post said.
"I love Yahoo!" was the only comment Blodget had for the paper. Asked if he was in talks with Yahoo, he responded: "Appreciate the interest, but don't talk about stuff like that."
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