Verizon Communications announced on Tuesday that it is acquiring AOL, formerly known as America Online, for $50 per share, in a deal worth approximately $4.4 billion.
“Verizon’s acquisition further drives its LTE wireless video and OTT (over-the-top video) strategy. The agreement will also support and connect to Verizon’s IoT (Internet of Things) platforms, creating a growth platform from wireless to IoT for consumers and businesses.”
The deal will aid Verizon in their move into the mobile video and advertising business, and will give them access to AOL’s technology for selling ads and delivering web video.
AOL’s other assets include its subscription business, (2.1 million users still subscribe to AOL’s dial-up Internet service); its premium portfolio of global content brands, including The Huffington Post, TechCrunch, Engadget, MAKERS and AOL.com, as well as OTT, original video content; and its programmatic advertising platforms.
Tim Armstrong, AOL chairman and CEO, will continue to lead AOL operations after closing.
AOL will become a wholly-owned subsidiary of Verizon once the transaction has been completed. The transaction is expected to close this summer.