Verizon Communications Inc., agreed to buy AOL Inc., a leader in digital content and advertising platforms space for $50 per share – estimated at a total value of $4.4 billion, aimed at advancing telecom giant’s ambitions in mobile video and advertising. The acquisition will provide Verizon access to advanced technology AOL has developed for selling ads and delivering high-quality web video.
“Verizon’s vision is to provide customers with a premium digital experience based on a global multiscreen network platform. This acquisition supports our strategy to provide a cross-screen connection for consumers, creators and advertisers to deliver that premium customer experience,” Lowell McAdam, Verizon chairman and CEO said about the acquisition.
Although Verizon acquires AOL, Tim Armstrong will continue to lead AOL as its chairman and CEO. 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.”
The US wireless business has matured in the recent years and the operators are snatching the market share from one to the other. Offering digital video over the wireless connection can improve the prospect of Verizon, which is already profitable in its revenue share. A video service from Verizon can be expected to be in the market very soon.