In a deal announced this morning before the stock market opens, Verizon and AOL have reached an agreement that will see the wireless company gain control of some very popular websites.
When I hear the name AOL my mind flashes back to the early days of the Internet and the various channels of information that were available on the dial up network.
Oh, and CD’s as well – lots of CD’s.
Well today AOL is the parent company of such sites as The Huffington Post, TechCrunch and Engadget and all of these will soon come under the direction of Verizon.
According to Verizon’s CEO Lowell McAdam this acquisition is all about content:
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.
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. At Verizon, we've been strategically investing in emerging technology, including Verizon Digital Media Services and OTT, that taps into the market shift to digital content and advertising. AOL's advertising model aligns with this approach, and the advertising platform provides a key tool for us to develop future revenue streams.
With the shift of data consumption moving to smartphones and small tablets having content to send down to those devices is a key element in moving forward and reaching consumers.
This deal delivers just that for Verizon.
Of course, this is an agreement to make the purchase so it still needs to go through the normal approval process but the company expects to close the acquisition out this summer.