Telecom titan Verizon Communications is buying media platform company AOL for 4.4 billion dollars in an all-cash deal expected to close this summer,pending regulatory approval.
AOL has once again become a digital trailblazer,and we are excited at the prospect of charting a new course together in the digitally connected world,said Verizon Chairman and CEO Lowell McAdams.AOL's advertising mode aligns with this approach and the advertisng platform provide a key tool for us o develop future revenue streams.*
AOL CEO Tim Armstrong and other leadership will stay on the job when AOL becomes a Verizon subsidiary.Mr.Armstrong described the combined company as deeply growth oriented and aimed directly at the platform shift that video and mobile are offering the world-today and 20 years from now.*
Verizon will get:
1.AOL's 2.2 million subscriber dial-up Internet business;
2.publications The Huffington Post;Engadget;and TechCrunch;
3.One,the automated cross-media ad-buying platform;
4.the video ad platform Adap.tv;and
5.the HuffPost Live streaming video network.
Verizon is acquiring AOL with the strategy of building the biggest media platform in the world,Armstrong said.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.AOL will oversee AOL,s current assets plus additional assets from Verizon that are targeted at the mobile and video media space.The deal will give our content businesses more distribution and it will give our advertisers more distribution and mobile-first features.The deal will add scale and it will add a mobile lens to everything we do inside our content,ads and video strategy.*
AOL has over 30,000 business partners;while Verizon,born of the 2002 merger of telecom heavyweights Bell Atlantic and GTE,is the largest US wireless communications service provider.The name "Verizon" is derived from "veritas," the Latin word for "truth," and "horizon." Verizon had 125.3 million wireless service customers as of September 2014,along with residential and small business services customers that are provided with phone service,Internet access and TV via copper wire or fiber optic cable.It is in the process of transitioning wireline customers to its more economical FiOS fiber optic cable.*
Verizon stock has a 4.43% dividend yield.*
Verizon Communications Inc (VZ),AOL Inc (AOL)
No comments:
Post a Comment