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posted by takyon on Tuesday May 12 2015, @10:22PM   Printer-friendly
from the that's-a-lot-of-coasters dept.

Verizon has announced that it will be acquiring AOL for $4.4 billion. Those of us that remember AOL from the dial-up days when all noobs used it might wonder what it possibly has worth that kind of cash today. Lowell McAdam, Verizon chairman and CEO, said:

"AOL has once again become a digital trailblazer, and we are excited at the prospect of charting a new course together in the digitally connected world. At Verizon, we've been strategically investing in emerging technology, including Verizon Digital Media Services and OTT, that taps into the market shift to digital content and advertising. AOL's advertising model aligns with this approach, and the advertising platform provides a key tool for us to develop future revenue streams."

A NPR blog has an excerpt from a paywalled WSJ article which further explains:

"Verizon has said it plans to launch a video service focused on mobile devices this summer. The company has offered few details, but last month Chief Financial Officer Fran Shammo said the service will offer a mix of paid, free and ad-supported content and won't try to replicate traditional TV.

"The service will feature shorter snippets rather than 30 or 60 minute shows. It also could include multicast programming—a sort of broadcast service that uses cellular airwaves—for delivering live content like sports and concerts, along with on-demand viewing."

NPR also notes:

Many people probably still associate AOL as one of their first Internet service providers. But more than two decades later, AOL is more of a media company: It owns The Huffington Post, TechCrunch, MapQuest and Moviefone. According to the company, it is the fourth largest online property in the U.S. with 200 million monthly visitors to its sites.

What does SN think? Can this deal possibly be worth it?

 
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  • (Score: 1) by nitehawk214 on Wednesday May 13 2015, @02:35PM

    by nitehawk214 (1304) on Wednesday May 13 2015, @02:35PM (#182390)

    No "person" is getting a check when a public company buys another public company.

    But clearly the stockholders of the overvalued company are the winners. As long as they get out before the jig is up and the new combined company has to do a big writeoff.

    People should be especially aware of this since a big one of these happened when... Time Warner bought AOL. Some people never learn... maybe the real winners are actually the power brokers that buy and sell the companies using other people's (the stockholder's) money.

    --
    "Don't you ever miss the days when you used to be nostalgic?" -Loiosh
  • (Score: 2) by tibman on Wednesday May 13 2015, @05:14PM

    by tibman (134) Subscriber Badge on Wednesday May 13 2015, @05:14PM (#182474)

    Good point. I have no idea how public companies work : /

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    SN won't survive on lurkers alone. Write comments.
    • (Score: 1) by nitehawk214 on Wednesday May 13 2015, @09:16PM

      by nitehawk214 (1304) on Wednesday May 13 2015, @09:16PM (#182637)

      Neither do most people involved in them.

      --
      "Don't you ever miss the days when you used to be nostalgic?" -Loiosh