Accuracy in Media

AOL stock nosedived by more than 25% yesterday after the company released earnings that fell short of Wall Street’s expectations.

The earnings reflected the first full quarter since the company purchased the Huffington Post earlier this year, which has failed to provide any of the synergy that AOL stockholders were promised when the deal was first announced.

Just a few months ago Huffington touted AOL stock in a tweet speculating that the best was yet to come.





Instead, the stock has fallen 44% since the deal was announced and is now off 53% for the year — far underperforming the market as a whole.

One quarter may not tell the whole story but the initial results are not encouraging. With the stock at $11 it could still fall further, if AOL can’t stop the bleeding soon.

For Huffington it won’t matter that much what happens to the company, as she and her investors were paid $300 million in cash and just $15 million in stock, leaving her with little incentive beyond pride to make sure the combined company is a success.

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