Leave a comment

Whoa. Guess who just bought AOL for $4.4 billion

Whoa. Guess who just bought AOL for $4.4 billion
Photo courtesy of Shutterstock

Yesterday, I told you the shocking statistic that AOL dial-up still has 2.1 million users, many of whom are paying $20 a month for the service. However, it turns out I wasn't the only one looking at AOL recently.

Verizon has just announced it is buying AOL for a cool $4.4 billion. But it isn't for the dial-up users.

Verizon is looking to create a media platform in addition to its wireless and Internet networks, and AOL already has the tools in place. In addition to expertise in mobile video and advertising, AOL also owns media giants Huffington Post, Engadget and TechCrunch, among other properties.

The plan is that AOL will become a division of Verizon and its leadership and employees will remain. AOL CEO Tim Armstrong wrote a letter to AOL employees saying that the net effect on AOL is that the distribution channels for its content have increased.

It should be said that AOL has tried something similar once before when it merged with Time Warner from 2000 to 2009 , and that was generally agreed to be a disaster. Time Warner CEO Jeff Bewkes even called it "the biggest mistake in corporate history."

Has AOL learned from past mistakes? It should be interesting to see what happens next.

Next Story
Source: The Verge
The next iPhone could be a huge upgrade
Previous Happening Now

The next iPhone could be a huge upgrade

Would you put your life in the 'hands' of this machine?
Next Happening Now

Would you put your life in the 'hands' of this machine?

View Comments ()