AOL (AOL) shares rose 1.87% to $36.85 following strong second-quarter earnings and the announcement of a major acquisition.
AOL earned 35 cents per share during the second-quarter, generating $541.3 million in revenue. Analysts surveyed by Thomson Reuters expected 32 cents a share on revenue of $540 million.
In addition, the New York-based company announced Wednesday that it would acquire Adap.tv, a video advertising company, for $405 million--$322 million in cash and $83 million in stock. AOL said that Adap.tv is used by 83 of the Ad Age 100 largest global advertisers. This acquisition is AOL's largest since splitting from Time Warner Cable in 2009.
CEO Tim Armstrong was enthusiastic about the purchase. "Adap.tv is the only player where buyers and sellers are built out at scale," he said on a call with analysts. "If I had to pay it personally out of my bank account I would have done it."
Closing prices: Z dropped 7.7% to $83.73, FB rose nearly 1% to $38.87 and AOL was up 1.4% to $36.69. --Written by Laura Berman in New York
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