AOL Inc., 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. 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.