AOL/Verizon appraisal litigation assessed

Author: Zoe Thomas | Published: 28 Jul 2015
The internet providers stressed the synergies created by their merger

Verizon closed its purchase of media and internet company AOL in a quick transaction at the end June. It followed 12 months of speculation that the company was a prime takeover target, but has nonetheless raised concerns about valuation.

The changing landscape for content and internet providers had forced Verizon and AOL to consider their reach to consumers. Both companies stressed the synergies created by the merger, and the short completion period – 42 days – reflected the joint desire to bring those advantages together quickly.

However the speed has raised questions from investors who have filed appraisal litigation. Close to five percent of shareholders...