AOL Time Warner Launches $5 Billion Share Repurchase Program.Business Editors NEW YORK--(BUSINESS WIRE)--Jan. 18, 2001 Company Will File $10 Billion Shelf Registration Actions Underscore Board's Belief in Underlying Value of Company and its Business Opportunities At its first meeting here today, the Board of Directors of AOL (A division of Time Warner, Inc., New York, NY, www.aol.com) The world's largest online information service with access to the Internet, e-mail, chat rooms and a variety of databases and services. Time Warner announced it has approved a series of measures reflecting its belief in the underlying value of the Company and its potential business opportunities moving forward. These include a program to repurchase up to $5 billion of the Company's common stock in the open market over the next two years and a shelf registration for $10 billion. The Company believes that these actions will give AOL Time Warner greater financial flexibility to take advantage of opportunities in the marketplace, to increase return on capital and to build shareholder value. Commenting on the stock buy-back program, Gerald M. Levin Gerald M. "Jerry" Levin (b. 6 May, 1939, Pennsylvania, USA) is an American businessman. He attended Haverford College, where he is a member of the Board of Directors. Levin spent most of his career with Time Inc. , chief executive officer of AOL Time Warner, said: "We said we would hit the ground running and that is exactly what we are doing. We have a clear road map for creating dynamic value for our shareholders and the stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program we are announcing today is part of our commitment to improving the return on our invested capital. Thanks to the strong growth prospects for our company, we're able not only to continue to invest in our world-class businesses, but to use a portion of our growing financial capacity to buy back stock at a time when we believe our shares are undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. ." The program to repurchase up to $5 billion of the Company's common stock in the open market will begin in February. These repurchases will be made from time to time over the next two years depending on market conditions. The Company also will file with the Securities and Exchange Commission within the next several days a universal shelf registration statement for $10 billion in aggregate initial offering price covering the issuance of debt securities, common stock, series common stock, preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. and warrants to purchase debt and equity securities. Proceeds from any offerings will be used for general corporate purposes including investments, capital expenditures, repayment of debt and financing acquisitions. AOL Time Warner (NYSE NYSE See: New York Stock Exchange :AOL) is the world's first Internet-powered media and communications company Communications Company is a communications unit of the United States Marine Corps. They are part of Combat Logistics Regiment 37 , 3rd Marine Logistics Group (3MLG) and III Marine Expeditionary Force (III MEF). The unit is based out of the Marine Corps Base Camp Smedley D. , whose industry-leading businesses include interactive services, cable systems, publishing, music, cable networks and filmed entertainment. Caution Concerning Forward-Looking Statements This document includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are based on management's current expectations and are naturally subject to uncertainty and changes in circumstances. Actual results may vary materially from the expectations contained herein due to changes in economic, business, competitive, technological and/or regulatory factors and factors affecting the integration of the businesses of Time Warner Inc. and America Online, Inc. More detailed information about those factors is set forth in filings by AOL Time Warner, Time Warner and America Online with the Securities and Exchange Commission, including AOL Time Warner's registration statement on Form S-4, Time Warner's most recent quarterly report on Form 10-Q Form 10-Q See 10-Q. and America Online's most recent annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . AOL Time Warner is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. To receive a copy of this press release through the Internet, access AOL Time Warner's corporate Web site located at http://www.aoltimewarner.com |
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