Is Verizon Really Buying AOL?

News - United States

It looks like Verizon is seriously thinking about acquiring AOL. Verizon wants to acquire AOL because the carrier is planning about expanding mobile-video offerings. According to the people with knowledge of the matter the discussions are private. Lowell McAdams, Verizon CEO, denied all these rumors on Tuesday and said that carrier is more interested in partnerships with media companies and content providers, rather than buying them.

He said,

“I think AOL, along with lots of other media companies, are potential for us to do partnering, commercial basis or whatever,” McAdam said at the Citi Media Conference. “But to say we are having significant acquisition discussions is not accurate.”

According to Bloomberg Verizon approached AOL about a possible acquisition or partnership. But according to CNBC all the rumors died when CEO of Verizon denied the report on Tuesday. AOL is the company which still provides dial-up internet to two million customers. The question is why the number one carrier of the country would think buying the company like AOL. Programmatic advertising technology -- the automated buying and selling of ads online - of AOL is also a reason behind all this scenario. According to CEO McAdam, Verizon owns and operates the largest wireless network of the nation and the company is more interested in distributing the content then creating it. He said, “I don't see us as a content company, but rather a platform company.”

Verizon and AT&T offer landline broadband and wireless services. Now the delivery of video content over their networks is a new opportunity the carriers have discovered.


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