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The AOL logo is seen on the outside of the building housing the companies corporate headquarters in New York Reuters

AOL Inc. (NYSE: AOL), the No. 7 website, got a tepid response from investors Thursday, the start of a $400 million Dutch auction tender offer.

The New York-based website received about $1.05 billion selling patents to Microsoft (Nasdaq: MSFT), the world's biggest software company, and wants to return the proceeds to shareholders.

Under the tender, AOL said it will buy back shares between July 28 and Aug. 2 for between $27 and $30. Shares of AOL rose only 19 cents to $27.50 in Thursday trading.

AOL management defeated activist shareholder Starboard Value Management in a proxy fight on June 14. Starboard had criticized CEO Tim Armstrong for failing to maximize shareholder value.

AOL shares have gained nearly 83 percent this year.

Microsoft Nyse Proxy fight New York