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-- -- -- -- had a nice hot today shares -- about 63 trading at 1784.
Company reporting a better than expected fourth quarter.
Despite beating the street they'll AOL did report a 66%.
Decline in fourth quarter profit and -- 3% decline in revenues.
The lowest in five years can the company stage a comeback this year joining us now -- first on Fox Business interview.
The chairman and CEO AOL Tim Armstrong can expect have you -- for having me are excellent improvement the stock is popping today.
Yeah an activist shareholder funded owns about a four and half percent stakes and you know we're a little concerned you're focusing away from the dial up -- the dial up access.
And banking too much on -- demand.
When you put your response.
First of all at AOL I think we're doing -- very.
Great job actually -- -- -- the largest corporate merger in history in terms of through some NFL I think number two is.
We're betting on the future of where consumers are going and where money is going I think it's hard to argue that front -- consumer adoption standpoint.
The space we've chosen -- which is content and advertising specifically are -- really -- brand advertising is going to be a very big growth market.
For the future so.
You can always break your company -- always do other things -- which some activist shareholders probably want but the reality is what you really -- News Corp.
is put the company in front of a very big opportunity.
You know very very clear products and services and show growth and meaningful improvements which we did during -- dial up becoming obsolete.
Gary you don't get up 18% decline right in subscribers in quarter you're dial up as one of those businesses that you know people consumers -- migrating towards anymore they were one time period but you know 33% of the people in this country.
Don't use broadband access.
10% still use dial up access overall so it's still a big market I think you saw our results -- first time in many many years there -- sequential growth.
In the dial in the subscription business overall so.
We're doing a very good job improving -- legacy business that we have today well but also these are really you know great growth and being -- FaceBook Google and AOL with a three biggest players.
To make advertising guard growth in a display marketplace in Q4.
You mentioned -- but.
How do you compete with FaceBook for advertisers and and we had CEO 1800 fires Hamas thank he was saying.
You know he doesn't do something unless he thinks it's gonna play on FaceBook how do you compete with that.
-- I think first of all you have to we look at FaceBook as a distribution model for our con -- and we have -- partnerships with them and number two -- -- -- marketplace -- segment -- -- in different markets the space that we're going after his premium brand.
Advertising in there we have I think the best performing product in the market place so.
It's it's a case where there's so much money coming in the marketplace that there is competition but -- competition helps each -- rather -- FaceBook filing to go public is gonna actually help costs.
From more attention on the space to realize how what the opportunity is for advertisers overall so we're -- partnership with them.
And we expect to compete for -- dollars but as you saw on our results -- and we're doing a good job compete.
Ad dollars right that is -- -- challenge right now I'm sure you're familiar with Google and their big announcement they're changing their privacy model rights they're gonna monitor users across all their platforms.
As a wasted profiled users.
And send that information you have to -- to the advertisers to generate more advertising dollars to be a -- monetize and is -- something AOL is considering 'cause it's a little unsettling -- I don't think if you don't forgot to shareholders is not settling sounds like a great idea that I'm sure right you are.
Here's a shareholder what you want as you want consumers to trust your brand your property is the end of the day that is the golden goose of your business and I think if you do anything to damage -- trust.
You know I'm sure -- we'll look at this closely which is how do they do in a way that actually keeps privacy for consumers and allows -- Hello it's our intention away over the -- we're gonna make the experience more convenient for you so if you search for guitar -- we're -- know -- -- my car or the cat.
Yeah but it look at as -- users we do the same thing on our services which is how do you -- -- get people better information faster as an end user and then how do you monetize in a way which is good for the user and good for the advertising customer.
All of us are focused on this and general on my -- -- know for a fact that work -- Google for ten years.
You know they're really sensitive to that on the probably continue to be sensitive to it.
Into -- they have such a franchise and legacy -- AOL does as you trust me in these meetings we have corporate meetings.
When -- your strategy the first thing you Starwood is what's gonna be great for the end user because -- the end of the day that's what drives the entire business to take out equation out you don't have a business.
It's switching gears a little bit critics have said that you overpaid for Huffington Post how do you respond about how is that investment paying -- I mean I would -- do you think -- imposes a bigger brand this year there was last year.
Ideally you look at it on the train every morning I -- ago but that could be an East Coast West Coast thing -- you know they say that that that's one of those brands that really appeals in in you know sort of you know more liberal areas but it's not something that all the countries I think you know.
If you look at what's happening in the world reversal of imposes only about 10% political coverage -- 90% other coverage it's grown 47%.
Since we acquired it.
Very successfully had great growth in Q4 on the advertising side -- -- -- so it is a mega brand and a megas space that's probably the most interest in time and media with it's conversion digital so that's why we acquired and I think.
We've got offer great value I would -- and we did some people thought it would pay more for it.
But we plan on making a very big business and money have a lot of -- -- -- On the theme of corporate structure for you said in the -- right no deals this year gonna folks on -- core business.
You had asked your shareholders for patients when you broke off from my Time Warner he -- -- share repurchase settling at a 10% repurchased just -- what -- he's sorry what what else you gonna do to enhance shareholder value.
We're doing the following things one is we're really focus on our strategy so we wanna have advertising growing said this year is a stretched target we potentially could get through our global gross growth of revenue again for the first time in many years and they -- well I think that's gonna be an impact -- and then the second thing is actually took.
Continue to be very good about cost of one of these -- Q4 was we had.
Two quarters -- -- sequential cost declines as a business so.
Grow revenue reduce cost.
We have a very big buy back in place that we've been executing against and I think you know shareholders.
-- -- a shareholder friendly company where transparent information I'm a big personal investor in the company so anything that we're gonna do is a business.
Were showing up to be profitable and showing hiring or hiring.
We have tried the -- half the size it was -- -- spun off from Time Warner unfortunately that's part of the turn around process.
But we're in a place right now where headcount was down 4%.
Overall if you exclude -- -- -- local investment account was down 10% -- every year.
So where to place we've managed operationally get the business and a very coherent.
Place to actually grow and -- my guess is you know we'll continue to tweak its structure in our strategy.
But we have a clear process we're going after clear operations are very robust strategy.
And we're gonna make progress in 2000.
While the number one headline that came out of your call was that you said here to positions start increasing revenue -- number one way you're doing right now what is it.
Is advertising and -- advertising we do three simple things for customers we do brand preference choice try to get something to choose one brand over and -- we turn advertising and content.
Second is on the data side we have real time in market targeting on advertising dot com network and we serve 30000 other publishers.
And then we do pages the parking lots which is the newest -- business but.
Offline sales offline channels are critical and for -- so we have pouch which is the largest infrastructure investment and content in the United States local communities.
We want a bill to move people from mobile phone screens or Internet screens and the store locations.
And that's a very important thing for challenge Procter & Gamble GM everybody across the world and so we're gonna grow using those three to three mechanisms.
I will be lots and Tim thanks so much thank god thank you some idea and we -- it makes him actually up.
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