March 2, 2010, 12:00 AM

AOL sells its affiliate marketing business buy.at

A little more than two years after AOL Inc. bought the affiliate marketing business buy.at for $125.2 million, the Internet portal is selling the business for $17 million.

A little more than two years after AOL Inc. bought the affiliate marketing business buy.at for $125.2 million, the Internet portal is selling the business to Digital Window Ltd., which runs a network of affiliate marketing sites, for $17 million, according to a report filed today with the U.S. Securities and Exchange Commission.

The company expects to record a pre-tax loss of $15 million to $20 million on the sale based on the cash proceeds and company’s carry value, according to the filing.

AOL bought buy.at in 2008, with an eye toward expanding its advertiser and publisher products. But since then AOL has shifted its focus to becoming a content provider.

Founded in 2002, buy.at charges advertisers only when the consumer who clicks on an ad takes an action, such as making a purchase or signing up for a free trial.

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