America Online 2009 Annual Report Download - page 45

Table of Contents
Using the historical panel-only methodology, our domestic average monthly unique visitors to AOL Properties, as reported by Media Metrix, for the
years ended December 31, 2009, 2008 and 2007 were 104 million, 110 million and 112 million, respectively. Our domestic average monthly unique visitors to
AOL Media, as reported by Media Metrix, for the years ended December 31, 2009 and 2008 were 74 million and 73 million, respectively. Unique visitor data
pertaining to AOL Media represents a customized report from Media Metrix that is not available for periods prior to January 2008. Our domestic average
monthly unique visitors to our total advertising network, which includes both AOL Properties and the Third Party Network, as reported by Media Metrix, for
the years ended December 31, 2009, 2008 and 2007 were 179 million, 171 million and 156 million, respectively. AOL's unique visitor numbers also include
unique visitors attributable to co-branded websites owned by third parties for which certain criteria have been met, including that the Internet traffic has been
assigned to us.
Media Metrix has announced the availability of an alternate panel-centric hybrid' methodology ("Media Metrix 360") to estimate unique visitors, in
order to provide a more accurate count of a website's audience. Media Metrix has implemented this new methodology domestically and, currently, in limited
countries globally. We elected to adopt this alternate methodology for our average monthly unique visitors to AOL Properties and AOL Media starting
December 2009 and going forward. As a result, our average monthly unique visitors to AOL Properties and AOL Media based on Media Metrix 360 will not
be comparable to the data under the previous panel-only methodology. For comparison purposes, domestic average monthly unique visitors to AOL Properties
for the month of December 2009 were 111 million under Media Metrix 360 and were 102 million under the panel-only methodology, and domestic average
monthly unique visitors to AOL Media for the month of December 2009 were 88 million under Media Metrix 360 and were 77 million under the panel-only
methodology.
Recent Developments
SALE OF PERFILIATE LIMITED
On February 26, 2010, we completed the sale of Perfiliate Limited (doing business as buy.at) to Digital Window Limited for approximately $17.0
million in cash (subject to working capital adjustments). We expect to record a pre-tax loss on this sale of approximately $15 to 20 million, based on the cash
proceeds and the carrying value of the net assets sold (including goodwill allocated to the sale). The results of operations of buy.at were not material to our
consolidated financial statements.
ACQUISITION OF STUDIONOW
On January 22, 2010, we completed the acquisition of StudioNow, Inc. ("StudioNow"), a provider of a proprietary digital platform that allows clients to
create, produce, manage and distribute professional quality videos at scale, for aggregate consideration of $36.5 million. $15.0 million of the consideration
was paid through the issuance of approximately 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. It is anticipated that a significant portion of the purchase price will be
allocated to intangible assets and goodwill. See "Note 4–Business, Acquisitions, Dispositions and Other Significant Transactions" in our accompanying
consolidated financial statements for additional information on our acquisition of StudioNow.
RESTRUCTURING ACTIONS
We undertook various restructuring activities in 2009 in an effort to better align our organizational structure and costs with our strategy. As a result, for
the three months and the year ended December 31, 2009, we incurred restructuring charges of $107.4 million and $190.3 million, respectively, related to
voluntary and involuntary employee terminations and facility closures. We are in the midst of a significant restructuring initiative which began late in 2009
and we expect to complete in the first half of 2010. We expect to reduce our total workforce by nearly one-third in connection with this restructuring
initiative, prior to hiring of new employees in areas of strategic focus . In addition, we plan to reduce our cost base in the United Kingdom and cease or reduce
operations in a number of other countries. Specifically, we plan to reduce our presence in Europe by significantly
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