Breaking: Telecom giant Verizon is acquiring AOL for $4.4 billion. AOL, which includes Huffington Post, Engadget, TechCrunch and more, will become a subsidiary of Verizon as part of the deal, overseeing a bigger push into content and mobile video by Verizon.
Lowell McAdam, Verizon chairman and CEO, said: “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.”
Tim Armstrong, AOL chairman and CEO, will continue to lead AOL operations after closing.
Armstrong said, “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.”
Read AOL CEO Tim Armstrong’s memo on the acquisition:
Today is a very proud day for all of us here at AOL – as you may have read in the press, we announced this morning that Verizon is acquiring AOL.
Over the last 5 years, we have returned AOL to growth and outperformed the market (+150% since spin) by investing in the future of content, video and programmatic platforms. We now have the opportunity to turn our efforts and assets to a broader market with an exponentially larger opportunity through the combination of Verizon and AOL, which will create the company best positioned for the next generation of mobile and video. The new entity will combine world-class media and world-class technology across every device.
We believe this move will game change our ability to out-perform against your expectations as consumers continue to disrupt legacy consumption and viewership habits. Right out of the gate, here’s what we will soon be able to bring to you:
Massive global scale in addressable cross-screen audience (over 1.5B PCs, TVs and mobile devices touching 70% of U.S. Internet traffic)
Access to a larger premium, mobile and video-led content library
Deeper content marketing solutions
Accelerated investment in programmatic products and features
Increased monetization opportunities
It is an exciting continuation of our Culture and Code journey – now with greater scale, more resources and assets. On behalf of everyone at AOL and Verizon, we are thrilled to partner with you every step of the way.
Thanks as always for your continued partnership and support.