Verizon Officially Completes Its $4.4 Billion Acquisition Of AOL
Verizon today announced that its acquisition of AOL for $4.4 billion dollars is officially complete.
Going forward, CEO Tim Armstrong will continue to lead operations at AOL. Bob Toohey, president of Verizon Digital Media Services, will now report to Armstrong.
As part of the acquisition, Verizon has also acquired a set of notable publications, including Engadget, TechCrunch, and the Huffington Post. This raises some ethical questions about editorial content, particularly for Engadget and TechCrunch, though both sites say they will remain editorially independent.
The dial-up Internet business at AOL, which is what made the company the giant it is today, is still its largest source of revenue. While most of its former customers have switched to faster broadband connections, 2.1 million subscribers still pay AOL $20 per month for dial-up. With that said, it’s clearly a shrinking business.
This acquisition is the latest in a handful of multibillion-dollar deals between cable, telecommunications, and satellite companies. For instance, AT&T last year announced a $48.5 billion deal for DirecTV, and Charter Communications has plans to merge with Time Warner Cable and Bright House. Satellite provider Dish and wireless carrier T-Mobile are also considering a merger.