Menu
Verizon bids US$4.4 billion for AOL

Verizon bids US$4.4 billion for AOL

The operator wants more content and an advertising platform as it looks for new ways to make money

Verizon Communications has agreed to buy AOL for about US$4.4 billion, as it looks to build more extensive digital and video platforms to drive future growth.

Network operators have to find new ways to make money as their traditional revenue streams are under pressure from a new generation of companies such as Skype, Facebook and WhatsApp.

Verizon's acquisition plan further drives its LTE wireless video and OTT (over-the-top) video strategy, the operator said, adding that its plan is to deliver services to customers over a global multiscreen network platform;

AOL's key assets include its subscription business: Media brands such as The Huffington Post, TechCrunch, Engadget, Makers and AOL.com, as well as original video content, according to Verizon. The company is also after AOL's programmatic advertising platforms, and looks to combine that with its own assets to build a mobile-first advertising platform.

The transaction will take the form of a tender offer followed by a merger, with AOL becoming a wholly owned subsidiary of Verizon upon completion. The transaction is subject to the usual regulatory approvals, but the companies expect to close the deal this summer.

Send news tips and comments to mikael_ricknas@idg.com

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags business issuesAOLMergers and acquisitionsVerizon Communications

Slideshows

Top 50 defining moments of the New Zealand channel in 2016

Top 50 defining moments of the New Zealand channel in 2016

Reseller News looks back on a tumultuous 12 months for the New Zealand channel, assessing the fallout from a year of sizeable industry change. Whether it be local or global mergers and acquisitions, distribution deals or job changes, the channel that started the year differs somewhat to the one set to finish it - Reseller News assesses the key moments that made 2016.​

Top 50 defining moments of the New Zealand channel in 2016
​Hewlett Packard Enterprise honours high achieving NZ channel

​Hewlett Packard Enterprise honours high achieving NZ channel

Hewlett Packard Enterprise honoured its top performing Kiwi partners at the second running of its HPE Partner Awards in New Zealand, held at a glitzy ceremony in Auckland. Recognising excellence across eight categories - from distributors to resellers - the tech giant celebrated its first year as a standalone company, following its official split from HP in 2015.

​Hewlett Packard Enterprise honours high achieving NZ channel
Nutanix treats channel partners to Christmas cruise

Nutanix treats channel partners to Christmas cruise

Nutanix recently took to the seas for a Christmas Cruise around Sydney Harbour with its Australia and New Zealand staff, customers and partners to celebrate a stellar year for the vendor. With the sun out, they were all smiles and mingled over drinks and food.

Nutanix treats channel partners to Christmas cruise
Show Comments