AOL Says It Hired Allen & Co., Wachtell Lipton as Advisers

AOL Inc. (AOL), the Internet company that’s struggling to halt a sales slide, said it retained investment bank Allen & Co. and law firm Wachtell, Lipton, Rosen & Katz as advisers. The stock jumped.

Graham James, a spokesman for New York-based AOL, confirmed the hiring of the firms in an interview. He declined to comment further.

AOL has posted net losses of almost $800 million in less than two years as a standalone company as it has struggled to make money from online advertising and its profitable dial-up Internet business has become increasingly obsolete. The Internet pioneer spun off from Time Warner Inc. (TWX) in 2009 plunged to a record low this month after cutting its profit forecast because of slowing growth in display-advertising sales.

The company, valued at $1.49 billion at today’s closing price, could attract private-equity bidders, companies such as Evercore Partners Inc. have said.

AOL rose $1.13, or 8.8 percent, to $13.94 at 4:15 p.m. in New York Stock Exchange trading. The stock has fallen 52 percent from its peak in April 2010.

Adweek reported AOL had retained the advisers earlier.

To contact the reporter on this story: Brett Pulley in New York at bpulley@bloomberg.net

To contact the editor responsible for this story: Ville Heiskanen at vheiskanen@bloomberg.net

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