AOL, a company that has come to be almost synonymous with Internet for many Americans, will be purchased by the communications provider Verizon for about 4400 million dollars.
Verizon expects the acquisition to help put one foot in the online video market. The operator had already announced this summer the launch of a video distribution service over the Internet and AOL has not only technology in this area – including for sale ads – such as content: owns sites such as the Huffington Post, very popular tech sites Engadget and Tech Cruch, and has focused on producing videos for viewing online.
The two companies have signed the agreement and the 4400 million (3916 million) correspond to $ 50 per share, a figure 17% higher than the $ 42.59 that were the closing price on Monday. Payment will be made in cash and commercial paper, or short-term debt.
The AOL starred in a huge dimensions business, when made a disastrous merger with Time Warner, for 15 years, in height of enthusiasm for Internet companies prior to the bursting of the “dotcom bubble”. The two companies ended up separating and AOL has struggled in recent years to maintain relevance. A possible merger with Yahoo – another company that had its apogee at the beginning of the last decade and that they have tried to adapt to the new era of Web -. Had long been a matter of speculation
After the purchase – which still have to get the approval of the regulatory authorities – AOL is a subsidiary of Verizon and will continue to be managed by the current president, Tim Armstrong
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