In a program on Bloomberg, AOL, Inc. (NYSE:AOL) Chairman and Chief Executive Officer Tim Armstrong talked about various ongoing projects and endeavors of his company. Armstrong said that AOL, Inc. (NYSE:AOL) is working to make advertisement mechanizing as easy as possible. He claimed that the company is getting immense revenue in ads. This revenue will convert into long term profits for the overall company. AOL reported $626 million revenue in the third quarter. He said that the company is successful in getting high traffic, new users and milestones. Revenue will be converted in profits very soon, Armstrong thinks. He said that the company is getting success on many platforms. The current investment mode will be converted into profit mode very soon. Recently, AOL, Inc. (NYSE:AOL) dismissed the rumors about Yahoo! Inc. (NASDAQ:YHOO) and AOL, Inc. (NYSE:AOL) merger.
AOL, Inc. (NYSE:AOL)’s CEO said that the market for programmatic ads is around $600 billion. Google and Facebook have a good market for programmatic end to end ads but these tech giants only consumer 5% of the total market. That means that there is still a big void remaining. Answering a question about how his company will monetize on content as more and more companies are using content businesses as their main stream of revenue, Armstrong said that the ad prices for other companies are plummeting but AOL, Inc. (NYSE:AOL)’s ad prices are growing.
AOL, Inc. (NYSE:AOL)’s chief cleared the dust regarding Yahoo merger. He said that Yahoo! Inc. (NASDAQ:YHOO) and AOL are not in talks about any merger. AOL is not seeing any potential in Yahoo! Inc. (NASDAQ:YHOO). The company has posted strong revenue and it is striving to thrive in its own specialties. Although Yahoo is one of the most visited websites in the world, it is yet unable to make a pronounced mark in the tech markets.
John Thaler‘s Jat Capital Management hold around 8.8 million Yahoo! Inc. (NASDAQ:YHOO) shares.