The mobile phone company Verizon announced the acquisition of internet service provider AOL to 50 dollars per share, or approximately $ 4.4 billion. The offer represents a premium of 17% over the closing share yesterday and 23% of the average of the last three months.
The transaction, explains the broadband provider, it will be completed this summer It will take the form of a tender offer followed by a merger. AOL will become a 100% subsidiary of Verizon.
The acquisition will give Verizon, which aims to grow in the crowded market for online video, access to advanced technologies developed by AOL to sell advertising and distribute video to another quality web. Verizon announced in recent months that it intends to launch a video service for mobile devices, with a mix of paid content and not without groped to replicate the model of television.
AOL has closed 2014 with revenues of $ 2.5 billion and a profit of $ 126 million. The combination of Verizon and AOL ‘creates what I consider the more mobile society, and video in the United States, “said Tim Armstrong, CEO of AOL.
The US phone giant has said convinced that offering video will be a major factor to support the demand for subscriptions to its wireless network in the coming years.
The media conglomerate Time Warner, born from a mega merger with AOL at dawn Dellera internet, had then decided to spin off the company’s Internet service in 2009.
For AOL therefore the sale to Verizon is the latest chapter in a history that has seen the company specialize in recent years in the media and digital marketing, having been one of the pioneers of web connectivity and be passed, in 2000, through the merger maxi from 183 billion dollars with Time Warner, which US observers define today “one of the most disastrous mergers ever” .
AOL is also publisher of a stable of online publications including Huffington Post, TechCrunch and Engadget.
12 May 2015 13:25 – Last Updated: 15:11
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