Verizon To Acquire AOL For $4.4 Billion

US telecom giant Verizon has announced plans to acquire AOL for $50 per share, bringing the content company’s total value to approximately $4.4 billion.
The move is in line with Verizon’s goal to build its own digital and video platforms in order to boost its LTE wireless video and OTT strategy.
The deal is subject to regulatory approvals and will be completed this summer. It will start off with a tender offer followed by a merger, which will make AOL a wholly owned subsidiary of Verizon.
AOL owns premium content brands such as The Huffington Post, TechCrunch, Engadget, MAKERS and, apart from its advertising platforms.
“This acquisition supports our strategy to provide a cross-screen connection for consumers, creators and advertisers to deliver that premium customer experience,” said Lowell McAdam, Verizon chairman and CEO.
Tim Armstrong, AOL chairman and CEO, will continue to lead AOL operations after closing.

Leave a Reply

Sign Up for NextBigWhat Newsletter