Verizon Overvalued AOL in 2015 $4.4B Buyout, Del. Judge Says

By Jacob Rund

Verizon Communications Inc. paid $1.30 more per share for former internet powerhouse AOL Inc. than the company’s “fair value,” a Delaware state court ruled.

Chancery Court Judge Sam Glasscock wrote Feb. 23 that AOL investors who challenged the $4.4 billion price of the 2015 acquisition should receive 2.6 percent less than the $50 per share offered by Verizon. The dissenting stockholders—a group of investment funds holding more than 8 million AOL shares—sought about $19 more per share than the deal price.

This is the second chancery court decision this month to find a company was worth less ...