Verizon is particularly interested in AOL’s video serving technology and advertising sales capability.
Which is lucky because no-one else is, and AOL has nothing else of any discernible value.
Verizon Communications is buying AOL for $4.4bn, apparently to strengthen its hand at video advertising. This comes on the back of Verizon’s existing plans to launch a video snacking service for mobes, with descriptions making it sound as though the plan will be using LTE-broadcast. Verizon is particularly interested in AOL’s …
Verizon, the latest in a line of companies making a loss on AOL. Seriously, why would anyone touch AOL with a barge pole? Actually I can think of one reason, aliens have arrived and they have threatened to destroy the earth unless we can provide millions of coffee coasters in the next few days.
Considering how unbelievably unimportant AOL are on the internet now I struggle to believe that Verizon couldn't have just built up whatever skills they needed in house just a quickly and for a lot less money.
Probably but presumably unrelated: your bill will go up because you're stuck in an uncompetitive market so they own you.
It's a cash-only transaction which suggests that Verizon has some profits it wants to offset against debt to reduce the tax burden.
40:1 price to profit is pretty steep but, seeing as cash is returning less than nothing, a carefully engineered purchase could work financially whatever else happens. And if it does fail then it's always possible to squeeze more out of those captive customers.
AOL is a lot more than just the old ISP, it includes many media outlets... Such as the Huffington Post....so consider this.
Verizon is a staunch anti net neutrality supporter... It's been very vocal in lobbying against it.
Media outlets such as the Huffington Post have been very supportive of net neutrality, campaigning strongly for it.
Now I'm not straight out saying that the reason they bought AOL is to dampen down reporting on net neutrality and things in the same vein as SOPA... But let's see what happens when the subject rears it's head again, and how vocal these Verizon owned media outlets cover it.