Report: Verizon may be planning to buy AOL

Verizon Wireless may plant AOL's digital ad service in its mobile video services, according to Bloomberg

U.S. telecommunications provider Verizon may be in the process of acquiring digital media company AOL, the Bloomberg news service has reported.

Verizon is interested in AOL's digital advertising unit, which it could incorporate into the mobile video service offered by its Verizon Wireless subsidiary, anonymous sources familiar with the talks told Bloomberg.

As an alternative to an outright acquisition, the two companies may also be considering starting a joint venture that would bring the digital advertising capabilities to Verizon's cellular network customers, according to the report.

Verizon declined to comment, though its CEO Lowell McAdam --speaking Tuesday at the Citi Global Internet, Media and Telecommunications conference in Las Vegas -- described the possibility of the AOL acquisition as "really not accurate," a Verizon spokesman confirmed.

Verizon is investigating a wide range of potential partnerships with digital media companies, McAdam said.

While AOL came to prominence as one of the first commercial providers of consumer Internet access, the company has shifted its strategy in recent years to focus on becoming an online media company, acquiring highly trafficked Web sites such as HuffingtonPost and TechCrunch. The company draws about 250 million unique visitors to its sites every month.

AOL also maintains a legacy dial-up Internet service, which is still used by over 2 million subscribers.

Verizon Wireless, a subsidiary of Verizon Communications, provides cell phone service to over 106 million customers.

On news of the rumor, AOL stock rose Tuesday by 2.9 percent, to US $46.04, as of 11:35 a.m. U.S. Eastern Standard Time.

AOL has not immediately responded to a request for comment.

Joab Jackson covers enterprise software and general technology breaking news for The IDG News Service. Follow Joab on Twitter at @Joab_Jackson. Joab's e-mail address is Joab_Jackson@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Mergers and acquisitionsbusiness issuesAOLverizon

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Joab Jackson

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?