This morning Verizon announced that it is purchasing AOL for $4.4 billion dollars. The company stated its intent to bolster their advertising and mobile video capabilities through the acquisition. The deal sent Twitter buzzing due to AOL’s notorious decline in recent years.
This move marks a clear effort by Verizon to become a major player in the digital advertising game. Currently, Facebook and Google control much of mobile advertising. But AOL’s CEO, Tim Armstrong, has done an excellent job turning AOL’s content and advertising into a highly successful revenue stream.
The AOL deal has everyone at the Lab talking. We tapped into our media and business development teams to make sense of the merger.
“This is a content play. AOL has proven very successful in becoming a modern media company.” – Rob Rosen
“$4.4 billion seems very low. Verizon has a huge opportunity to integrate with AOL for more advanced conversion attribution. Cross-device attribution is huge play for Verizon to make in the advertising space.” – Owen Halligan
“In the future, I see many other mobile carriers moving into the content business.” – AJ Meyer
It remains to be seen how Verizon will integrate AOL, but it shows Verizon’s effort to challenge Google and Facebook’s advertising dominance. We applaud Verizon for its innovative thinking, and look forward to monitoring potential payoff in the future.