iWorld

Verizon acquires AOL for $4.4 billion

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/internet-images/2015/05/12/I-world-OTT.jpg?itok=jChb9Eu5

MUMBAI: Taking another significant step in building digital and video platforms to drive future growth, Verizon Communications Inc. has acquired AOL Inc. for an estimated total value of approximately $4.4 billion.

AOL chairman and CEO Tim Armstrong will continue to lead AOL operations after closing.

Verizon's acquisition further drives its LTE wireless video and OTT (over-the-top video) strategy. The agreement will also support and connect to Verizon's IoT (Internet of Things) platforms, creating a growth platform from wireless to IoT for consumers and businesses.

The combination of Verizon and AOL creates a scaled, mobile-first platform offering directly targeted at what eMarketer estimates is a nearly $600 billion global advertising industry. AOL's key assets include its subscription business; its premium portfolio of global content brands, including The Huffington Post, Tech Crunch, Engadget, MAKERS and AOL.com, as well as its millennial-focused OTT, Emmy-nominated original video content; and its programmatic advertising platforms.

Verizon chairman and CEO Lowell McAdam 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.”

“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,” he added.

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.”

The transaction will take the form of a tender offer followed by a merger, with AOL becoming a wholly owned subsidiary of Verizon upon completion.

The transaction is subject to customary regulatory approvals and closing conditions and is expected to close this summer.

Verizon expects to fund the transaction from cash on hand and commercial paper. The company also continues to expect to return to pre-Vodafone transaction credit ratings in the 2018-2019 timeframe.

Transaction advisers for Verizon were Lion Tree Advisors; Guggenheim Partners; and Weil, Gotshal&Manges. AOL advisers were Allen & Company LLC and Wachtell, Lipton, Rosen & Katz.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/07/18/spull.jpg?itok=T6UMGZUM
Spuul Now Available at Ola’s Connected Car Platform, Ola Play

Spuul, the popular global video-on-demand (VOD) platform today announced a partnership with India’s leading and one of the world’s largest ride-sharing companies, Ola and its connected car platform for ridesharing, Ola Play.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/07/18/bimal_0.jpg?itok=NP7W1i6K
Viu appoints Bimal Unnikrishnan as india content head

Viu, leading OTT service by PCCW and Vuclip, has appointed Bimal Unnikrishnan as Vice President Content for India to focus on the service’s original content portfolio. Bimal will report to Vishal Maheshwari, Country Head for Viu India.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/07/18/full.jpg?itok=37q4sRPF
SonyLIV Goes Regional with 'Full Tight'- Launches its second Marathi Web-Series

With 180.3 million* active online video viewers and almost 4 million* registered subscribers, the OTT companies today are making huge investments in language content to spur growth from regional markets.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/07/18/Netflix.jpg?itok=z5Uv8ggu
In Q2 earnings call, Netflix's added focus on India

Though Netflix did not deliver an outstanding performance for Q2 2018, its focus on India has surely risen. In the follow-up conference call, India was mentioned 20 times, which is higher than the last nine quarters combined.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/07/17/yahoo5.jpg?itok=PuVRfxlp
Yahoo to shut messenger app after 20 years

Yahoo Messenger, the messaging app, is finally shutting down for good.The app, which was acquired by Verizon in 2017, is shutting down on 17 July. The company didn't give any explanation for shutting its messenger. Yahoo Messenger users will now be directed to invite-based Yahoo Squirrel service...

iWorld Social Media
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/07/17/zenith.jpg?itok=D78kJuLN
Zenith report says online video viewing to cross 1 hour a day

Consumers across the globe are becoming increasingly engaged with online videos. Zenith’s Online Video Forecasts 2018 reveals global consumers will spend watching online videos more than one hour on average this year. From 2017’s 56 minutes, the average will go up to 67 minutes.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/07/17/netflix.jpg?itok=GowOUwX6
Netflix shares sink after it misses Q2 subscriber growth expectations

Making some analysts’ prediction true, Netflix could not live up to its second-quarter earnings expectations. The streaming video giant added 5.15 million subscribers worldwide compared to the expectation of 6.2 million new subscribers. Following the result, the company’s stock fell down 14 per...

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/07/17/TRAI-Story.jpg?itok=drmXC631
TRAI releases recommendations for privacy & protection of consumer data

The Telecom Regulatory Authority of India (TRAI) has come out with its recommendations on ‘Privacy, security and ownership of data in the telecom sector’.

iWorld Telecom
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/07/17/chu.jpg?itok=h_xpAlQ0
Indian YouTube kids channels gain momentum

Technology has redefined entertainment for kids across the world. As more kids get hooked to mobiles and tablets, the business of kids content on YouTube thrives more. With hundreds of channels entering the sector every year, this category is expanding as well as giving more scope of monetisation...

iWorld Social Media

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories