AOL’s 2009 was eventful, to say the least: a new CEO, its spinoff, and a major restructuring and downsizing exercise were among the few of them. And it reflects in the numbers that have come out in its annual 10K report, filed this morning with SEC.
– AOL’s restructuring in 2009: For the three months and the year ended December 31, 2009, it incurred restructuring charges of $107.4 million and $190.3 million, respectively, related to voluntary and involuntary employee terminations and facility closures.
– Plans to reduce its presence in Europe by significantly reducing its operations in France and Germany and ceasing operations in a number of other countries.
– 2010 restructuring charges are expected to be up to $50 million, most of them in first half of this year.
– Yesterday, AOL (NYSE: AOL) announced the sale of its European affiliate marketing network it bought two years ago, to London based Digital Window. No price was disclosed, but the filing says the sale was for $17.0 million in cash. It expects to record a pre-tax loss of about $15 to 20 million on this. AOL bought Buy.at two years ago for $125.2 million in cash.
– In Jan it announced the acquisition of aggregation site StudioNow for $36.5 million in cash and stock. The breakdown, from the filing: $15.0 million through 595,000 shares of AOL common stock. Of the remaining $21.5 million, $14.0 million was paid in cash at the close date and $7.5 million is due in cash two years subsequent to the close date.
– Patch, the local site that AOL bought last year for $7 million, will see an investment of about $50 million during the remainder of 2010.
– Bebo, which is being held for sale, had an investment of $7.8 million in 2009. AOL bought it in 2008 for $860 million.
– AOL’s Google (NSDQ: GOOG) search deal expires Dec 19 this year. Will Bing make a move? In 2009, search advertising revenues comprised approximately one-third of its total ad revenues (about $557 million), so it is a big account. For 2008 and 2007, those numbers were $677.9 million and $642.1 million, respectively.
– TMZ, the celeb site that is now fully part of Time (NYSE: TWX) Warner’s Telepictures Productions, had a down year in 2009. According to the filing, the prior-JV 50-50 revenue split between AOL and Telepictures was $8.7 million, $12.7 million and $9.6 million in 2009, 2008 and 2007, respectively. Which means full year revenues for TMZ for 2009 were $17.4 million, much lower than $25.4 million in 2008. More on TMZ: until end of AOL-TMZ deal by end of this year, AOL will still get rev share from TMZ ad sales, in return for hosting and other services. The arrangement: AOL will get 15% of gross ad revs, up to and including $10 million, and 20 percent in excess of $10 million, with a guaranteed minimum revenue share of $1.5 million to AOL.