The major carriers have remained very active throughout the first half of 2015. Verizon is making another splash with the acquisition of AOL at $4.4 billion. It is amazing to think Verizon could acquire what was once a pioneer of the online world at such a reasonable cost.
The move will help Verizon have control over a wide range of content and subscribers. Many of the different assets within the deal include AOL Websites and their 200 million unique visitors (Huffington Post, TechCrunch, Engadget). In addition, they will have control over AOL video and original content as well as their advertising technology. In total, this will be 2 million new subscribers under Verizon control.
“Verizon’s vision is to provide customers with a premium digital experience based on a global multi-screen network platform,” said Lowell McAdam, Verizon’s chief executive. “This acquisition supports our strategy to provide a cross-screen connection for consumers, creators and advertisers to deliver that premium customer experience.
This move is likely the rebuttal to AT&T’s acquisition of DirecTV last year. This move would be considered a bargain in comparison since AT&T will have to shell out over 10 times more to build its video play.
The age of mobile and video is now upon us. Verizon has certainly grown tired of purely perpetuation other company’s content. They will make their own personal impact on the market while many subscribers will be pleased to see content and advertising that is geared toward their specific interests. This will ultimately become a new revenue stream through an established platform. It will also improve their mobile-first content distribution approach.
Launch 3 Telecom is a distributor of surplus wireless equipment that is used by major carriers such as Verizon. For more information about our equipment and services, contact us at 877-878-9134 or email sales@launch3.net.
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