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 newsletter!

Error: Please check your email address.

Tags business issuesAOLMergers and acquisitionsVerizon Communications

Featured

Slideshows

Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP honoured leading partners across the channel at the Partner Awards 2017 in New Zealand, recognising excellence across the entire print and personal systems portfolio.

Meet the top performing HP partners in NZ
Tech industry comes together as Lexel celebrates turning 30

Tech industry comes together as Lexel celebrates turning 30

Leading figures within the technology industry across New Zealand came together to celebrate 30 years of success for Lexel Systems, at a milestone birthday occasion at St Matthews in the City.​

Tech industry comes together as Lexel celebrates turning 30
HP re-imagines education through Auckland event launch

HP re-imagines education through Auckland event launch

HP New Zealand held an inaugural Evolve Education event at Aotea Centre in Auckland, welcoming over 70 principals, teachers and education experts to explore ways of shaping and enhancing learning using technology.

HP re-imagines education through Auckland event launch
Show Comments