Verizon Signs Agreement to Acquire Digital Media Company, AOL
FREMONT, CA: Verizon is all set to acquire AOL with the signing of an agreement to purchase AOL for approximately $4.4Bn. As a provider of telecommunication and entertainment services, Verizon looks forward to buttress its digital and video platforms to drive its digital entertainment and information business.
AOL is a prominent digital media company with successful ventures in the form of The Huffington Post, TechCrunch, Engadget, AOL.com as well as having a market share in online advertising, content streaming, and more.
Verizon on the other hand has a vast portfolio of products and services catering to a broad spectrum of organizations from small business to large enterprises. It has set up Verizon Enterprise dedicated for serving the enterprise customers; Verizon Wireless that delivers wireless services for users. Its other businesses include broadband services, mobile 4G LTE network service, cloud services, M2M, security solutions, as well as digital media services that helps businesses manage and distribute engaging content to audience at the global level.
With AOL in its kitty, Verizon believes it is better positioned to deliver enhanced digital experience on a global multiscreen network platform for its customers. It also looks forward to explore greater opportunities in digital marketing industry which is currently a holy grail for generating massive revenues over the internet.
“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,” said Lowell McAdam, Chairman and CEO, Verizon.
“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,” said Tim Armstrong, Chairman and CEO, AOL.