SAN FRANCISCO (AP) — AOL CEO Tim Armstrong is making a $10 million bet that his turnaround strategy will pay off. He just invested that amount of money in 477,000 shares of the company’s stock.
In a Monday filing with the Securities and Exchange Commission, Armstrong reported buying the shares at an average weighted price of $20.97 apiece on Friday. The move raises his stake in the struggling Internet company to about 4 percent, according to AOL.
Armstrong, AOL Inc.’s CEO since April 2009, increased his holdings after the company’s stock dropped 6 percent following its announced $315 million acquisition of the online news site Huffington Post. The deal is part of Armstrong’s effort to attract more traffic to AOL so its website is more appealing to advertisers.
(© 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)