Why Shares Of AOL Are Giving Back Some Early Gains

Shares of AOL, Inc. (NYSE: AOL) surged after reports surfaced that the company has been approached by Verizon Communications Inc. (NYSE: VZ) who may be interested in acquiring the company or taking part in a joint venture.

Shares of AOL traded as high as $50.75 in Tuesday's pre-market session, but have since dipped lower. The reason for the selloff may be attributed to comments made by CNBC's and New York Times Dealbook's Andrew Ross Sorkin who was quoted as saying: "my sources, by the way, they are not waving me completely off the story, but more towards a joint venture/do something with video."

Shares of AOL were still trading higher by 5 percent at $47 after Sorkin's comments.