Verizon has agreed to buy AOL for $4.4 billion.
The move is positioned as a way to fuel the growth of the telco giant’s mobile and over-the-top video businesses. AOL’s assets and expertise in mobile content and advertising will support Verizon’s goal of creating a “global multiscreen network platform” that delivers content for consumers wherever they are, and helps advertisers reach them while they’re there, according to Lowell McAddam, chairman and CEO of Verizon.
“At Verizon, we’ve been strategically investing in emerging technology, including Verizon Digital Media Services and OTT, that taps into the market shift to digital content and advertising. AOL’s advertising model aligns with this approach, and the advertising platform provides a key tool for us to develop future revenue streams,” he added in a statement.
AOL’s chairman and CEO Tim Armstrong will remain at the helm following the completion of the deal, which will turn AOL into a wholly owned subsidiary of Verizon.
The deal is expected to close this summer. It was advised by LionTree Advisors, Guggenheim Partners, and Weil, Gotshal & Manges for Verizon, and Allen & Company LLC and Wachtell, Lipton, Rosen & Katz for AOL.
Video Discovery: Why Hasn’t Anyone Solved It (Yet)?