An Early Investor in America Online Sells His Stake

The New York Times

September 20, 1994

A prominent investor in America Online Inc., Paul Allen, sold his remaining stake in the company yesterday. "A key criterion of Mr. Allen is to work with companies that can contribute technologically to his other companies," said Susan Pierson, Mr. Allen's spokeswoman at Vulcan Northwest Inc., his investment vehicle. "The synergy hoped for wasn't realized with America Online." Mr. Allen's initial investment of about $30 million grew to about $130 million earlier this year. America Online, based in Vienna, Va., is the country's third-largest on-line service, providing electronic mail, news, software and access to chat lines to customers through modem-equipped personal computers. Mr. Allen, a co-founder of the Microsoft Corporation, was an early investor in America Online when the company went public in the spring of 1992 and at one point tried to buy it.

Copyright 1994 The New York Times Company