back to article Verizon in SUDDEN $4.4bn AOL GOBBLE, aims to make fourplay more exciting

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 …

  1. Anonymous Coward
    Anonymous Coward

    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.


    1. werdsmith Silver badge

      Makes you wonder, then, how they managed this:

      AOL’s 2014 revenue grew to $2.5bn with a profit of $126m

      I have no idea either, I've heard barely a thing about them since 1999. But then I don't don't live in USA.

    2. Crazy Operations Guy

      If they actually make a profit, then they are infinitely more valuable than Twitter/Facebook/WhatsApp/Instagram...

  2. Anonymous Coward
    Anonymous Coward


    4.4bn CD mailers carried the deal, just too bad there's less than 3bn CD players.

  3. M7S

    A time to reverse an injustice?

    Bring back Connie now!

    1. Anonymous Coward
      Anonymous Coward

      Re: A time to reverse an injustice?

      I think Connie never really went away: as they like to say, 'connie lingers'.

  4. Anonymous Coward
    Anonymous Coward

    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.

  5. thomas k.

    Well, guess this means my Verizon bill will be going up.

    1. Charlie Clark Silver badge

      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.

    2. Wade Burchette

      Did your bill ever go down?

  6. Haku

    $4.4bn? Really?

    And here was us thinking we AOL came free on a CD.

  7. Anonymous Coward
    Anonymous Coward

    Perfect synergy

    AOL is a perfect fit with Verizon's copper landline business unit.

  8. I Like Heckling Silver badge

    It's all about the media

    AOL is a lot more than just the old ISP, it includes many media outlets... Such as the Huffington 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.

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