It was slightly surprising when we first heard about Verizon’s intention to acquire popular media company AOL, but it appears that the deal has now reached its final phase. AOL is now a part of Verizon which will give Old Red all of AOL’s software technologies and its popular media sites; The Huffington Post, Engadget and TechCrunch.
This acquisition did not come cheap, however, as Verizon had to shell out $4.4 billion dollars in order to procure the company, or about $50 a share. This deal should prove to be very beneficial to both companies as AOL has a large media preference and Verizon has a strong leadership team, copious amounts of capital and a powerful presence.
[blockquote author=”Verizon”]Every day, we connect people, companies and communities with powerful technology, enabling the convenience of mobile services when and where our customers want it. Verizon Wireless. Welcome to connected living.[/blockquote]
What will occur from here on however can only be speculation? Will Verizon transform AOL into a powerful, crimson media presence to help promote its brands? Maybe it will sell most of AOL’s assets and keep only the technology used to power its media presence? Perhaps a mixture of both, who knows. What we do know is that both companies are happy with the deal and hopefully it will prove to not only be beneficial to the entities listed but also to consumers.