Verizon, it was announced Tuesday, will acquire AOL for a reported $4.4 billion.
But what everyone wants to know is: will the investment truly pay off?
Although AOL has appeared to remain a company in decline to many, Verizon sees the once mighty Internet company as a valuable partner.
Verizon, in part, is acquiring AOL as the means to take “another significant step in building digital and video platforms to drive future growth.”
Verizons acquisition further drives its LTE wireless video and OTT (over-the-top video) strategy. The agreement will also support and connect to Verizons IoT (Internet of Things) platforms, creating a growth platform from wireless to IoT for consumers and businesses.
Verizon believes the combination of its company with AOL creates a “scaled, mobile-first platform offering directly targeted at what eMarketer estimates is a nearly $600 billion global advertising industry.”
Lowell McAdam, Verizon chairman and CEO, expressed optimism Tuesday.
Verizons vision is to provide customers with a premium digital experience based on a global multiscreen network platform,” McAdam said in the formal announcement. “This acquisition supports our strategy to provide a cross-screen connection for consumers, creators and advertisers to deliver that premium customer experience.