Verizon To Acquire AOL For $4.4 Billion
Verizon announced on May 12 that it has signed an agreement to acquire AOL for $4.4 billion. The acquisition will bring AOL-owned websites, namely, The Huffington Post, AOL.com, TechCrunch, Engadget, MAKERS and other original video content and an advertising platform under Verizon’s stable, according to reports.
Through its Verizon Wireless unit, Verizon has been strengthening its video offerings by pursuing new forms of video over the internet and besides that, US carrier has its Fios service that provides pay TV beside telephone services and connectivity, reports CNET.
Verizon is trying to become a ‘one stop shop’ for entertainment and internet services just like its peers in UK like BT and Vodafone, reports BBC News. AOL that has two million customers for its dial up internet service gained popularity for posting compact discs for its services through numerous letterboxes in the 1990s, as per the BBC News report.
In a press release issued by Verizon, the company’s Chairman and CEO, Lowell McAdam says, “Verizon’s vision is to provide customers with a premium digital experience based on a global multiscreen network platform. This acquisition supports our strategy to provide a cross-screen connection for consumers, creators and advertisers to deliver that premium customer experience.”
AOL’s Chairman and CEO, Tim Armstrong will continue to lead AOL operations and the press statement issued by Verizon quoted Armstrong saying, “Verizon is a leader in mobile and OTT connected platforms, and the combination of Verizon and AOL creates a unique and scaled mobile and OTT media platform for creators, consumers and advertisers. The visions of Verizon and AOL are shared; the companies have existing successful partnerships, and we are excited to work with the team at Verizon to create the next generation of media through mobile and video.”
The acquisition of AOL will push Verizon’s LTE wireless video and OTT (over the top video) strategy and the deal will also connect Verizon’s IoT platforms that will bring about a growth platform from wireless to IoT for businesses and consumers, as per the press release issued by Verizon.
The association of Verizon and AOL brings about a scaled, mobile-first platform offering, which is directly targeted at the $600 billion global advertising industry, as per eMarketer estimates, mentioned in Verizon’s press release.
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