Verizon is set to buy AOL for $4.4bn (£2.8bn) to build its digital platforms.
The acquisition will see AOL become a wholly owned subsidiary of Verizon upon completion. Explaining the reasons behind the deal the US telecoms giant has said it would drive its 4G wireless video and internet strategy, as well as supporting the company’s Internet of Things platforms.
Lowell McAdam, Verizon chairman and CEO, 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’s assets include its subscription business, The Huffington Post, TechCrunch, Endgadget, Makers and AOL.com. Verizon said that it plans to use the AOL to create a mobile-first platform that will directly target the global advertising industry.
Tim Armstrong, AOL CEO and chairman, will continue to lead AOL operations, with the transaction expected to close this summer, pending regulatory approvals.
He added: ‘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.’