|The New York Post reported July 19 that after Internet giant AOL bought MovieFone.com in 1999, they found they were obligated to pay a $22.75 million court ordered debt, in the form of advertising, to another vendor. Assuming the responsibility for the debt, AOL contacted the entitled company, which ran greyhound tracks in Rhode Island and Colorado. |
AOL’s suggestion was to set up a greyhound racing site online, 24dogs.com. in the company’s name. The site is still online, though the company has yet to agree that such expansion online is what it wants in lieu of the $22.75 million in advertising.
Wall Street observers feel AOL went ahead with the site to include the cost of it (paid by AOL) in its advertising revenues, in order to make AOL stock look better.