MediaBytes - Tuesday November 17, 2009 - 2 Comments
AOL Worth an Estimated $3.4 Billion in Spin Off: MediaBytes with Shelly Palmer November 17, 2009
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Time Warner’s long awaited spinoff of AOL will happen December 9th. The spin off estimates that AOL is worth approximately $3.4 billion, 1/11th of Time Warner’s total worth. The $3.4 billion valuation is two billion less than the company was estimated to be worth in July.
A British report notes that phony Canadian pharmacists are selling counterfeit swine flu drugs online. The con artists, which are suspected to be Russian mobsters, are making millions on the fake transactions. The group behind the survey is telling prospective customers to avoid purchasing H1N1 or Swine Flu drugs online, especially Tamiflu.
A new study by the American Heart Association believes some games on Nintendo’s Wii may actually be making users healthier. The study specifically sites the Wii sports and Wii fit series, saying that users who play increase energy levels by taking part in “moderate intensity exercise.” While the gaming console does not provide any direct health benefit, Motohiko Miyachi, who led the study, said it “may contribute to prevention of cardiovascular diseases.”
YouTube and Univision have struck a deal that will stream long and short form content from Univision on the video network. The parties believe the deal will increase the growing number of hispanic’s streaming video online, a demographic which grew over 80% last year. Viewers can expect programming from all three of Univision’s networks to hit YouTube in the next three months.
Comments
2 Responses to “AOL Worth an Estimated $3.4 Billion in Spin Off: MediaBytes with Shelly Palmer November 17, 2009”Robert H. Heath November 17th, 2009 8:27 am
Shelly - The TechCrunch article on AOL that you’ve linked to is
pretty sloppy with its calculation of AOL’s value. The author’s
math only works if one assumes that each share of AOL trades at the
same price as Time-Warner stock after the distribution to
shareholders. While that may be the company’s hope, there can be no
assurance that the shares will in fact trade at that level. So the
dividend ratio says nothing definitive about AOL’s value. Also, AOL
was NOT valued at $5.7 billion last July when Time-Warner bought
out Google’s shares. A significant amount of the cash paid to
Google was a “catch up” payment for cash distributions while Google
was a shareholder. The implied value of AOL’s equity at that time
was somewhere between $2.5 and $3.5 billion. You can find the math
here: http://roberthh…07/aol-rip.html in footnotes 1 and 2.
Paula Lynn November 17th, 2009 9:04 am
Phoney Canadian pharmacists selling counterfeit swine flu drugs on
line suspected to be Russian mobsters….who woulda’ thunk?
Nigerian bankers?Still after all this time, it proves too many
people are really sadly stupid.