Dodge & Cox reduced its stake in AOL to 8.4% or 6,207,529 shares based on its 13G filing with the Securities and Exchange Commission (SEC) dated May 31, 2015.

Dodge & Cox’s 13F filing showed that it owned 14.96% or 11,717,432 shares of AOL during the first quarter of this year. The investment management firm trimmed its stockholding in the company by more than 5,507,903 shares. It is still one of the largest shareholders of AOL.

AOL financial and stock performance

AOL is a global media technology company with a mission to simplify the internet for consumers and creators. The company owns Huffington Post Media Group, which operates 56 websites including Engadget, The Huffington Post, and TechCrunch among others.

During the first quarter, AOL delivered better-than-expected financial results. Its earnings were $0.34 per share compared with the $0.32 per share expected by analysts. Its revenue was $625.1 million, higher than the $594.6 million consensus estimate.

The shares of AOL closed $50 per share on Tuesday. Over the past 52 weeks, the stock traded between $36.15 and $50.81 per share. The company gained over 38% in stock value over the past year.

AOL stock performance

Verizon inks deal to acquire AOL

Last month, Verizon Communications signed an agreement to acquire AOL for $50 per share or $4.4 billion in cash. The acquisition price represents a 23% premium to the three-month, volume-weighted average price of AOL.

Lowell McAdam, Chairman and CEO of Verizon Communications said the acquisition supports their strategy to provide cross-screen connection to consumers, creators, and advertisers to deliver a premium experience.

AOL “got the best deal” for shareholders

In a recent interview with CNBC, AOL Chairman and CEO Tim Armstrong emphasized that the deal with Verizon Communications makes sense. According to him, Verizon is one of the largest and most successful companies worldwide.

He said, “We has one sheet of paper that had multiple dimensions on it overall, and Verizon basically ticked all of those boxes. We got the best deal for our shareholders, the best deal for our team and employees at AOL, the best deal fro Verizon.”

Armstrong also said they will “offer a new layer of service above the Verizon pipes, which will be all about media, content, and advertising.”