Verizon will be purchasing AOL for $4.4 billion, which is valued at $50 per share. Both companies confirmed this Tuesday. This seems to be a strategic push by Verizon to expand on their Internet of Things and they could definitely benefit from AOL’s digital and video experience.
AOL was of course the dial-up king of the 1990s and has generated millions in digital advertising revenue. It has also supported major websites and brands like Engadget, TechCrunch, and The Huffington Post. Verizon will be launching a mobile video service this summer so AOL could be a part of it, and more importantly Verizon can use AOL’s advertising platforms to get the word out about it.
“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 Lowell McAdam, chairman and CEO of Verizon, in a public statement.
“We were, as a company, essentially very interested in the platform transition to mobile,” said Tim Armstrong, CEO of AOL, in a public statement. “There is really a platform shift happening in the world.”