AOL filed 10Q in record time. Among the juicy stuff is possible clue
to buyer of the 4% covertible bond. See below. But first, some other
interesting stuff from the 10Q:
- 32% of Q1 $44m ad sales were $14.2 recognition of Tel-Save $100m
paid 2/97
(Note: AOL's FY9710K filing states --"The Company recognized
$24,100,000 in other revenues during the fiscal year ended
June 30, 1997, pursuant to the [Tel-Save] Agreement. In the
aggregate, the Company expects to recognize approximately
$50 million of revenue pursuant to the Agreement during
calendar year 1997" i.e. $11.7m in Q298)
- Spending $600-$800 million in FY98 for infrastructure:
- 2/97 class action by Bill "king of shareholder suits" Lerach
accepted 9/97 for litigation by Court (after at first being
dismissed, then refiled). Of greatest interest isn't possible
monetary damages, but public disclosure the litigation may
force. For example it goes on in detail alleging AOL practices
to goose subscriber counts.
download full text of original filing at:
securities.stanford.edu
Also, the website of Lerach's firm is amazing. Check it out:
milberg.com
-------------------------
In May 1996, the Company entered into a joint venture with Mitsui &
Co., (Mitsui) and Nihon Keizai Shimbun, Inc. (Nikkei) to offer
interactive online services in Japan. In connection with the agreement,
the Company received approximately $28 million through the sale of
convertible preferred stock to Mitsui. The preferred stock has an
aggregate liquidation preference of approximately $28 million and
accrues dividends at a rate of 4% per annum. Accrued dividends can
be paid in the form of additional shares of preferred stock. During
May 1998, the preferred stock, together with accrued but unpaid
dividends, automatically converts into shares of common stock based
on the fair market value of common stock at the time of conversion. |
