Starboard Value Nominates Five to AOL’s Board

February 28, 2012 Debbie Jacobs In the News

Hedge fund Starboard Value LP recently nominated several candidates to AOL’s board, explaining that their discussions have not been satisfying thus far.

According to Starboard, who owns 5.2% of AOL’s stock, AOL’s patent portfolio has the potential to generate over $1 billion in licensing income, with the proper management. AOL possesses valuable intellectual property, including patents involving secure data transfers, e-comerce and navigation.

AOL’s new growth strategy is making “significant progress,” based on improvement in earnings, as well as a 20% increase in its shares.

“Several months ago, prior to Starboard’s first letter, the AOL board of directors authorized the start of a process, and hired advisors, to realize the value of certain non-strategic patents,” AOL said. They added that several meetings have been held, offering the hedge fund an opportunity to influence AOL’s board.

“Unfortunately, Starboard Value LP has a singularly focused agenda and rejected this productive path to address their stated concerns and drive increased shareholder value,” AOL said.

Starboard wrote a statement claiming they had no intention of replacing a significant part of AOL’s board, which has eight seats in total.

The five members nominated this week are: Ronald Epstein, Steven Fink, Dennia Miller, Jeffrey Smith and James Warner.

AOL Inc, Economy, Finance, Hedge Funds, Starboard Value,

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