Tuesday morning started off with a bang on the announcement by Verizon Communications Inc. (NYSE: VZ) that it will acquire AOL Inc. (NYSE: AOL) for $50 a share in a deal worth $4.4 billion. The wireless carrier will initiate a tender offer for AOL shares, followed by a merger that will make AOL a wholly owned subsidiary of Verizon.
In its announcement, Verizon said it is “building digital and video platforms to drive future growth” by making this acquisition. The company is getting both a content company and a mobile advertising platform that offers entry to a potentially more lucrative space than its carrier business. While not on the same scale as Comcast Corp.’s (NASDAQ: CMCSA) acquisition of NBCUniversal from GE, it reflects the same desire to expand beyond the fat pipes business.
AOL brings several content brands to the table, including The Huffington Post, TechCrunch, Engadget and AOL.com. All…
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