Verizon has announced the signing of an agreement to purchase AOL $50 per share, an estimated total value of approximately $4.4 billion. 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 has been investing heavily in ad tech and has created a programmatic platform for advertisers. It is also known for its strong digital content and advertising platforms. With the acquisition of AOL, Verizon seems set to drive a mobile-first strategy. 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.
Lowell McAdam, Verizon chairman and CEO said, “Verizon’s vision is to provide customers with a premium digital experience based on a global multi-screen network platform. At Verizon, we’ve been strategically investing in emerging technology, including Verizon Digital Media Services and OTT, that taps into the market shift to digital content and advertising. AOL’s advertising model aligns with this approach, and the advertising platform provides a key tool for us to develop future revenue streams.”
Tim Armstrong, AOL chairman and CEO, will continue to lead AOL operations after closing of the deal. The transaction is subject to customary regulatory approvals and closing conditions and is expected to close this summer.