May 13, 2015

Verizon to buy AOL for $4.4 billion

It's not uncommon for large tech companies to shuffle and reshuffle the deck of ownership through mergers and acquisitions. However, it's not every day that a company like Verizon announces that it will buy AOL for $4.4 billion. This week, Verizon announced the all-cash deal which is anticipated to be completed this summer pending regulatory approvals, according to Alexander Kaufman of The Huffington Post. 

"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," said Lowell McAdam, Verizon chairman and CEO. "AOL's advertising model aligns with this approach, and the advertising platform provides a key tool for us to develop future revenue streams."

Along with the purchase of AOL comes the company's digital properties like The Huffington Post and TechCrunch. Those entities, according to AOL CEO Tim Armstrong, will continue to operate independently from Verizon despite sharing a corporate umbrella. 

AOL has spent the last decade orchestrating a massive rebranding. For the early years of its existence, the company was known for its email and messaging services, which lost ground with the advent of platforms like Gmail and Facebook. Since then, AOL has focused heavily on video and other digital content that drives users to company sites. In 2011, the business made waves with its $315 million acquisition of news and blog aggregating site The Huffington Post and has made other purchases to bolster its relevance on the tech landscape. 

With the guidance of a qualified M&A advisor, companies can navigate the challenges of a merger or acquisition with expertise and sound guidance. Contact us today to learn more about how our services can help your company reach its growth objectives.