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July 17, 2018
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So what does this mean for Verizon?
Posted On: May 12, 2015

AOL’s content and technology will build upon our strategy of adding platforms on top of our industry-leading network connectivity. AOL’s portfolio of technologies will complement our LTE wireless video and OTT (over-the-top video) roadmap. The agreement will also support and connect to Verizon’s IoT (Internet of Things) platforms, creating a growth platform from wireless to IoT for consumers and businesses.

AOL is a leader in the digital content and advertising platforms space, and the combination of Verizon and AOL creates a scaled, mobile-first platform offering directly targeted at the global advertising industry.

AOL’s key assets include its subscription business; its premium portfolio of global content brands, including The Huffington Post, TechCrunch, Engadget, MAKERS and AOL.com, as well as its millennial-focused OTT, Emmy-nominated original video content; and its programmatic advertising platforms.

The deal is worth an estimated value of approximately $4.4 billion, or $50 per share.

“Verizon’s vision is to provide customers a premium digital experience based on a global multiscreen network platform,” said Lowell McAdam. “This acquisition supports our strategy to provide a cross-screen connection for consumers, creators and advertisers to deliver that premium customer experience.”

He added, “AOL has long been a digital trailblazer, and we are excited at the prospect of charting a new course together in the digitally connected world. AOL’s advertising model aligns with our Verizon Digital Media Services and OTT assets to tap into the market shift to digital content and advertising. The advertising platform provides a key tool for us to develop future revenue streams.”

When the deal closes, Tim Armstrong, AOL chairman and CEO, would continue to lead AOL operations after closing. 

Armstrong said, “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.”

AOL would become a wholly owned subsidiary of Verizon upon completion of transaction.

The transaction is subject to customary regulatory approvals and closing conditions and is expected to close late this summer.

Additional details will be shared as they become available. 

Posted by Jeremy Godwin - 7:01 AM, May 12, 2015


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