Just this morning, Techcrunch announced that its parent company, AOL is being acquired by Verizon for $4.4 billion. With this deal, AOL will become a subsidiary of Verizon.
In an official statement, Verizon says,
“Verizon’s acquisition further drives its LTE wireless video and OTT (over-the-top video) strategy,”
The quickest growing revenue source inside AOL is a new system that allows monetization of advertisements alongside fast growing mobile video.
This purchase shouldn’t be completely surprising, as there were rumors floating around that Verizon did indeed have interest in acquiring AOL. Turns out those weren’t just rumors.
AOL CEO Tim Armstrong is optimistic.
“The deal means we will be a division of Verizon and we will oversee AOL’s current assets plus additional assets from Verizon that are targeted at the mobile and video media space. The deal will not change our strategy – it will expand it greatly….”
Armstrong will continue to run AOL after the deal closes.