Investor pushes for America online changes

A Gotham fund that wants a completely new board plus an all-new proper strategic business plan at America online Friday launched a alternate slate of 5 company company directors it's selected to manage for election within the Netco's annual meeting in May. America online, the newest in the string of companies including Yahoo and Lionsgate to handle a disgruntled investor trying to pressure change, mentioned it had been in talks with Starboard however the firm rejected any "productive path" forward. Lionsgate fended off Carl Icahn carrying out a tense standoff. But pressure from Yahoo investor Third Point LLC brought to co-founder Jerry Yang quitting the board taken. Starboard Value LP, which has about 5.2% of America online, started agitating late a year ago for that organization to awesome its mission for media while focusing on patenting proprietary Internet technology. Starboard claims America online has huge intellectual property that "went unacknowledged and under-utilized." Including, it mentioned, 800 patents covering secure data transit and e-commerce, travel navigation, online marketing together with the areas. "We appreciate the ongoing dialog we have had with management and others in the board within the last two several days. However, we are very disappointed our conversations in regards to the issues elevated...have postponed. Particularly, we are troubled the organization remains closed-minded to alternative value creation initiatives, and rather appears solely dedicated to pursuing things because they are,In . Starboard written in the letter to AOL's board Friday. It thinks the patent portfolio could generate over $1 billion in certification costs. America online mentioned in the statement Friday it had held several conferences with Starboard, which was offered an opportunity to assist shape AOL's board of company company directors, but that Starboard's "singularly focused agenda" made compromise impossible. America online mentioned it's dedicated to simplifying the business and enhancing investor value which 2011 was the most effective year it has been on the while if this involves advertising revenue, improvements in legacy revenue streams, reducing costs. The stock, which closed Friday at $18.32, has risen significantly in the 52-week low of roughly $10. America online mentioned it's also divested non-core assets, bought back stock and implemented a "performance-based culture to operate against our apparent strategy." It mentioned it had already hired experts to learn to extract cash from "non-proper" patents. "We'll still strongly execute and innovate on our strategy after we continue the turnaround of America online," the business mentioned. But the turnaround at America on the internet is a piece happening almost since Time Warner acquired it in 2001. It cut the cord last season when America online again increased to become standalone public company. As broadband elevated, dial-up clients, which have been the first backbone in the America internet business, started disappearing. America online has moved in a number of directions, like buying the Huffington Publish, but is fighting in the complex digital landscape with vicious competition for every ad online dollar and constant speculation from the takeover or merger. The alternate board slate includes Starboard cofounder and Boss Jeffrey Cruz patent expert Ronald Epstein private investor Steven Finke Dennis Burns, a classic professional at Lionsgate, The brand new the new sony Pictures and Turner and James Warner of online marketing advisory firm Third Floor Companies which has held positions at Primedia, CBS and Cinemax. Contact the number newsroom at news@variety.com