Verizon has today revealed plans to purchase AOL for a pretty sweet $4.4 billion.. I didn’t even know AOL was still a thing
AOL used to have a pretty big presence in the UK a good decade and a half ago, they were the number one provider of dial-up Internet when that was a thing, but then broadband came along and AOL kind of just disappeared from the UK. In the states however it seems AOL are still going strong, strong enough for Verizon to purchase the company for $4.4 billion. That means Verizon purchased AOL at $50 per share, with the overall transaction to be completed in the Summer.
Verizon are expected to make the most out of AOL’s digital content and advertising knowledge and will use it as a “significant step in building digital and video platforms to drive future growth.” The deal will bring with it around $300 million in debt as well as all of AOL’s assets including it’s long-running subscription which has kept the service alive for so long, and the big brands it has under its wing such as The Huffington Post, Engadget, TechCrunch, and of course AOL.com.
According to Verizon it’ll make the most use out of AOL’s advertising knowledge and video platform using it as a “significant step in building digital and video platforms to drive future growth.”
AOL will also be keeping its current staff with CEO and chairman Tim Armstrong remaining as its leader of operations after the deal is completed.
In an email to staff which has been acquired by The Verge, Armstrong said:
Today, we are announcing that the largest and most innovative wireless and cable company – and the one investing the most in high quality mobile content – is acquiring AOL with the strategy of building the biggest media platform in the world. The company is Verizon and the deal will game-change the size and scale of AOL’s opportunity. Just as AOL has propelled The Huffington Post,, TechCrunch, and other companies we have acquired, Verizon will propel AOL and comes to the table with over 100 million mobile consumers, content deals with the likes of the NFL, and a meaningful strategy in mobile video.
This is an example of one of the steps many wireless companies are making in order to expand further than just providing coverage and data to its customers. Armstrong himself said:
Mobile will represent 80% of consumers’ media consumption in the coming years and if we are going to lead, we need to lead in mobile.