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Verizon Had 3 Competitors for AOL Buy, AOL Discloses In SEC Filing

AOL had at least three other potential suitors before agreeing to be bought by Verizon, AOL said in a 14D-9 filing Tuesday at the SEC, without naming the three. Verizon’s pursuit of AOL started last summer, when Verizon CEO Lowell…

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McAdam first met with AOL CEO Tim Armstrong to discuss “ongoing and emerging trends in their respective industries,” the filing said. On March 15, Verizon made a more formal offer to buy a majority of AOL, which Armstrong took to his board four days later, AOL said. Discussions continued with a second potential suitor in April, the filing disclosed. It said AOL has considered selling off some assets. Armstrong is slated to get an incentive award of 1.5 percent of the company’s market value at the time of the deal's completion, which would translate to $59 million at the current $3.9 billion value, the filing said. Armstrong also holds options and shares that would bring him $179 million or more. The deal was unveiled two weeks ago (see 1505120019).