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  "documentTitle": "Starboard Value | Activist Presentation Deck | 96 slides",
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  "authorName": "Starboard Value",
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  "presentationDate": "2012-05-01 00:00:00",
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  "pageNumber": 23,
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  "notes": "Includes a CEO quote used to support the activist's argument.",
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      "kind": "callout",
      "text": "As a result of the mismatch between the high cost structure of the Display businesses and the primarily low-CPM ad sales it generates, we estimate that AOL loses over $500 million in its Display business.",
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      "text": "AOL owns over 50 different content brands. We question how many of them have the scale to compete profitably. Furthermore, for its Display properties that do have substantial scale, the Company has invested aggressively in high-cost, in-house editorial staff in an attempt to develop premium content to attract deep-pocketed national advertisers. AOL also employs high-cost direct sales reps to try to sell its ad inventory directly to ad agencies at premium CPMs (cost per thousand views). However, it is our understanding that a large percentage of the Company's ad inventory is sold through advertising networks and advertising exchanges, which carry significantly lower CPMs than direct sales.",
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      "kind": "paragraph",
      "text": "We believe the poor performance of AOL's Display business is the direct result of its lack of focus and the Company's expensive operating cost structure.",
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      "kind": "quote",
      "text": "First of all – to be very blunt – AOL's struggle in profitability is not because we can't be profitable. It's because it has to be set up properly.",
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      "text": "(1) Sourced from Company website. (2) Display losses are based on Starboard Value estimates derived from assumptions including EBITDA margins of 80% for the Access business, 73% for Search, 5.5% for Advertising Network, and 10% for the Company's Other businesses.",
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      "text": "AOL's Display business is not profitable because it is pursuing a high cost strategy",
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