Verizon, one of the biggest mobile carriers in the Americas, has acquired AOL, the owner of global online publications like TechCrunch, The Huffington Post and Engadget, for $4.4 billion, or around $50 per share. Verizon says the carrier will continue pushing for mobile-first content production and ad-tech which will further be boosted by the acquisition of leading online platform in the country. The carrier hopes AOL will increase the share Verizon gets from the $600 billion global ads market.
AOL reaches to over 400 million viewers/readers today via the online publications under its roof, the press release has disclosed.
AOL CEO Tim Armstrong, who will continue holding his position, said AOL's strategy to further invest in mobile content will be strengthened. AOL's latest Q1 results has gone beyond the expectations with $625 million of revenues.
Official announcement released by Armstrong is as follows:
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.
Best, Tim Armstrong