The Verizon-AOL Deal.
February 8, 2016
The Verizon-AOL Deal. Why and what it means for you.
Verizon, has approached AOL about a possible acquisition/joint venture. While the companies have some similar services the most usual result would be the access to Mobile and Digital-video ads.
Verizon has 100 Million mobile service users and 6.5 million broadband internet service users. While AOL is the 3rd largest desktop video company (Google, Facebook lead video). AOL is also the only company that is possibly up for sale.
Automatic Advertising in mobile videos is a high return revenue stream, AOL has a network that reaches almost half the US population and makes itself a great contender for growth.
As more and more advertisers are moving to online mobile content – Verizon wants to make its stamp and this could the way to do it.
While this deal is not complete this could lead to a market capitalization for Verizon, passing its mobile competitors in the ad revenue market.