Taking another significant step in building digital and video platforms to drive future growth, Verizon Communications Inc last month agreed to purchase digital conglomerate AOL Inc. for $50 per share – an estimated total value of about $4.4 billion.
Verizon’s acquisition further drives its LTE wireless video and (over-the-top) OTT video strategy. The agreement will also support and connect to Verizon’s Internet of Things (IoT) 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 what eMarketer estimates is a nearly $600 billion 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 original video content and 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. 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 once again become a digital trailblazer, and we are excited at the prospect of charting a new course together in the digitally connected world. 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.