I think I missed something here. I'm pretty sure acquisition of another company is not one of those fundamental changes in company form that requires shareholder approval. Selling the company is. A stock split would double the number of shares outstanding; what other doubling of shares are we talking about? A secondary offering? Again, I think I missed something.
Anyone notice in the latest issue of Red Herring that electric utilities are now testing internet access over power lines? The consequence for companies like AOL is enormous. No phone connections, no timed use, and the line to your house is always "on." Why will people bother messing with phone charges?
What I would like to find out is the company that is making the "modems" for electric power line connections. Anyone know? Please e-mail me at firstname.lastname@example.org. Thanks!
How can a company in this bad of shape have a stock this high? The reason it needs more shares is that it needs cash. It has a current ratio less than 1 and cannot sustain itself without a major infusion. It doesn't have any more shares left to dilute its shareholders with, so it needs more.
They cannot compete with the new Yahoo!/MCI alliance. They have never made money with the flat rate pricing and have never demonstrated that they have a viable business model. Yahoo! looks to be on the road to sustained profitability already. With the Yahoo! brand and MCI's customer base for phone service, AOL cannot press enough cd roms to get users.
I think this last move is a last gasp. I cannot imagine anyone paying $9 billion + just for this brand so I dismiss the takeover rumors.