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Starboard Files Detailed Investor Presentation On AOL Inc.

NEW YORK May 24, 2012 June 14

GOLD Dennis A. Miller Jeffrey C. Smith James A. Warner Alberto Ibarguen Patricia Mitchell James Stengel

Highlights of the presentation include:

    • Prior to Starboard’s involvement with AOL, the Company and its shareholders had suffered through poor operating and stock price performance since the spin-off from Time Warner. 
    • During this period, revenues declined twice as fast as operating expenses and EBITDA margins deteriorated significantly. 
    • December 2011
    • Starboard believes this recent increase in AOL’s stock price is in large part attributable to Starboard’s involvement with AOL, the recent actions taken in response to Starboard’s involvement, and Starboard’s plans to continue to significantly increase value at AOL.


    • $500 million
    • $500 million
    • $900 million $1.7 billion
    • $428


    • $20 million to $60 million
    • $40-50 million
      • $40-50 million $79 million to $133 million
    • AOL appears to be pushing ads to Patch that could have been used on other AOL properties to inflate Patch revenue and justify continued investment.


    • AOL has consistently compared itself to some of the world’s largest companies, many of which seem to not only be outside of the range recommended by these leading independent proxy advisory firms, but also appear not to be comparable businesses.
    • Starboard believes determining the right peer group is critical because it represents the foundation upon which compensation planning and relative performance is measured.
    • Starboard agrees with the assertion by a leading proxy advisory firm that "Shareholders need to be satisfied that the peer group is appropriate and not cherry-picked for the purpose of justifying or inflating pay."


    • Dennis Miller Jeffrey Smith James Warner
    • $150 million
    • Starboard’s nominees would seek opportunities for value creation by exploring alternatives for certain of the AOL’s assets, including its remaining intellectual property portfolio, its real estate, and capital structure efficiencies.

About Starboard Value LP

New York

Investor contacts:

Peter Feld
Gavin Molinelli

Media Contact:

[email protected]


Bruce H. Goldfarb

(1) Display revenue figures from Company filings. Disaggregated Display losses are based on Starboard Value estimates derived from assumptions including EBITDA margins of 80% for the Access business, 73% for Search, 5.5% for Advertising Network, and 10% for the Company’s Other businesses. These values are derived from conversations with the Company, competitors, Wall Street research analysts, and Starboard Value internal estimates.

SOURCE Starboard Value LP

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