Verizon closes on AOL, plans for added digital content delivery
Verizon Communications closed on its $4.4 billion acquisition of digital content provider AOL. The deal was consummated June 22, with Verizon announcing it had purchased outstanding AOL shares for $50 per share, with AOL now a wholly owned subsidy of Verizon.
The deal was originally announced last month. AOL CEO Tim Armstrong is set to continue leading AOL’s operations, with Bob Toohey, president of Verizon’s digital media services, set to report to Armstrong, who will in turn report to Marni Walden, EVP and president of product innovation and new businesses at Verizon.
The move adds AOL’s digital content expertise to Verizon’s portfolio, which the telecom operator stated would boost its LTE wireless video business, its “over-the-top” video offerings and create “a growth platform from wireless to [‘Internet of Things’] for consumers and businesses.” AOL also controls a number of content brands including Huffington Post, Engadget, TechCrunch and Makers.
Verizon noted its digital media services business is designed to help companies “prepare, deliver and display digital media content including video, Web pages, applications, mobile ads and live events on any screen.” Verizon last year bought Intel Media for Internet video technology, content delivery network EdgeCast Networks and live video encoder UpLynk.
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