Verizon buying AOL in deal targeting mobile video, advertising assets
Verizon remains the biggest player in the US wireless market, but just because it finds itself in the top spot doesn’t mean that the firm is content to sit back and coast by on its previous success. Far from it, in fact, and today we learn of a big move the company behind carrier is undertaking in order to bolster its position in mobile, announcing plans to buy AOL in a deal worth $4.4 billion.
AOL? Worth that kind of money in this day and age? You’d be surprised, and beyond its still-profitable dial-up business, the company’s advertising and media holdings make it very attractive to the likes of Verizon.
Specifically, Verizon has its mind on a new mobile video service it intends to launch this summer, and what AOL’s experience delivering streaming video could could mean for this new venture. AOL’s ad business also fits in with this expansion, ready to provide additional opportunities for generating revenue.
AOL CEO Tim Armstrong calls the combination of Verizon and AOL “the largest mobile and video business in the United States,” and suggests it has the resources to compete with the likes of Google and Facebook. That’s a bold claim, and it will remain to be seen if this pairing really has the might to follow through on such ambition.
Source: The Wall Street Journal