Verizon Acquiring AOL for $4.4 Billion
Verizon has announced that it is purchasing AOL for $0.50 a share which works out at a massive $4.4 billion.
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 millennial-focused OTT, Emmy-nominated original video content; and its programmatic advertising platforms.
Once the deal has closed AOL will become a wholly owned subsidiary of Verizon. Tim Armstrong will continue as leadership of AOL once the deal has concluded.
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 transaction is subject to customary regulatory approvals and closing conditions and is expected to close this summer.