Verizon Buying AOL For $4.4 Billion: Things You Should Know About This Deal
Verizon has agreed to buy AOL for $4.4 billion - $50 per share. The transaction, reportedly, will be completed this summer.
The American mobile giant described the deal as a "significant step in building digital and video platforms to drive future growth."
The deal is the biggest transaction for Verizon after completing $130 billion buyout of Vodafone from its Verizon Wireless business last year.
"Verizon needs to feed the beast with some compelling content, and AOL has some of that," said Peter Csathy, chief executive of business advisory firm Manatt Digital Media. "AOL has not been overly successful in this arena, but what it does have is a very strong advertising sales force and ad technology."
In January, Verizon CEO Lowell McAdam denied rumors of being in talks to acquire AOL and suggested that it and other media companies should be considered suitable candidates for partnerships rather than complete takeovers. However, today he said: "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."
According to The Verge, AOL will retain current CEO and Chairman Tim Armstrong as its leaders of operations after completion of the deal.
