In shocking news this morning Verizon announced it will acquire AOL for $4.4 billion. That works out to $50 a share, above the market close of $42 on Monday. Verizon is buying AOL for its programmatic advertising and video content. Verizon however will also get a collection of blogs including TechCrunch, Engadget, and The Huffington Post.
“Verizon’s vision is to provide customers with a premium digital experience based on a global multiscreen network platform,” said CEO and chairman Lowell McAdam. “This acquisition supports our strategy to provide a cross-screen connection for consumers, creators and advertisers to deliver that premium customer experience.”
There has already been rumors of Verizon spinning off The Huffington Post, and many worries of TechCrunch losing its editorial control. While its unlikely Verizon will take any interest in breaking up these sites or taking editorial control away, especially since these sites are the ones writing about them.
The sale of AOL isn’t surprising as its made its business model more appealing with the growth in its ad spots are generating millions of dollars each quarter. What’s alarming is Verizon wanting to make you pay for internet then server ads on top of the internet you’re already paying for.
Tell us in the comments below what you think about Verizon buying AOL for $4.4 billion.