The largest wireless carrier in the US, Verizon Communications is making a significant move in the Over-the-Top(OTT) space as well as in the mobile advertisement segment with the acquisition of AOL for an estimated total value of approximately $4.4 billion. The agreement will also support Verizon’s IoT (Internet of Things) platforms, allowing the combined entity to be better positioned to deliver enhanced solutions in the IoT/Machine-to-Machine(M2M) market. Tim Armstrong, AOL chairman and CEO, will continue to lead AOL operations, said the Operator.
According to Verizon, with AOL's leadership in the digital content and advertising platforms space, it can now create a scaled, mobile-first platform offering, directly targeted at what eMarketer says is a $600 billion global advertising industry. AOL’s key assets include its subscription business; its premium portfolio of global content brands, including The Huffington Post, TechCrunch, Engadget, MAKERS and AOL.com, as well as its millennial-focused OTT, Emmy-nominated original video content; and its programmatic advertising platforms.
Lowell McAdam, Chairman & CEO, Verizon
Verizon’s vision is to provide customers with a premium digital experience based on a global multiscreen network platform. This acquisition supports our strategy to provide a cross-screen connection for consumers, creators and advertisers to deliver that premium customer experience. 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. 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.
Tim Armstrong, Chaiman & CEO, AOL
Verizon is a leader in mobile and OTT connected platforms, and the combination of Verizon and AOL creates a unique and scaled mobile and OTT media platform for creators, consumers and advertisers. 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.
