Verizon Purchase Of AOL May Enhance Video, Advertising For Wireless Company
By Edward Cardenas
SOUTHFIELD (CBS Detroit) - Verizon is buying AOL for about $4.4 billion, which help advancing the wireless company's push into the mobile and advertising fields and may not have a large impact on cellular service.
The $50 per share purchase of AOL by the country's largest wireless company was announced Tuesday morning, and gives Verizon a greater presence in digital and video platforms.
"Verizon's vision is to provide customers with a premium digital experience based on a global multiscreen network platform," Lowell McAdam, Verizon chairman and CEO, said in a release. "This acquisition supports our strategy to provide a cross-screen connection for consumers, creators and advertisers to deliver that premium customer experience."
By acquiring AOL, which still provides Internet access and email services for customers, Verizon gains access to AOL's advertising technology and digital content websites and providers such as The Huffington Post and TechCrunch.
The purchase also will help Verizon grow its LTE wireless video and IoT (Internet of Things) platforms - which helps connect a variety of devices to the Internet.
AOL is fourth largest online property in the United States with nearly 200 million monthly consumers of its brands, the company stated.
"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," said Tim Armstrong, AOL chairman and CEO, in a release.
Armstrong will continue to lead AOL after the deal closes this summer.