Verizon to buy AOL for USD 4.4 billion

News Broadband United States 12 MEI 2015
Verizon to buy AOL for USD 4.4 billion
Verizon is taking a major step in the online content market with the agreed acquisition of AOL for USD 4.4 billion. The US operator said AOL will support its LTE wireless video and OTT video strategy, as well as tie in with its Internet of Things platforms. In addition to just over 2 million internet subscribers, AOL is a major presence in the US online advertising market, produces a variety of online video content and owns well-known websites such as TechCrunch, The Huffington Post, Engadget, Makers and AOL.com. 

Tim Armstrong, AOL chairman and CEO, will continue to lead AOL operations after the takeover closes. Verizon will finance the deal with cash on hand and commercial paper and expects to complete the acquisition this summer, pending regulatory approval. Verizon said it still expect to return to the credit ratings it had before buying out Vodafone's stake in Verizon Wireless by 2018-2019. 

The offer price of USD 50 per share represents a premium of 17 percent on AOL's share price the day before the announcement. Media reports in January suggested that Verizon was looking at a bid for AOL, but the operator later denied these, saying it preferred to partner with media companies. 

Categories:

Internet

Companies:

AOL,  Verizon

Countries:

United States

Tags:

Portals / social media, Internet Access, Advertising services, M&A buyouts & divestments

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