With AOL, Verizon will seek to strengthen vein of content – The Economist

The largest mobile operator paid US $ 50 for each share of the former giant of online searches.

telecoms operator Verizon will acquire AOL 4,400 million, a step in its goal of strengthening its presence in the markets of mobile devices and ads.

The offer of $ 50 per share represents a premium of 17.4% AOL on closing Monday at $ 42.59 per share.

The acquisition Verizon ensure a gateway in the increasingly competitive field of streaming, streaming video online. The company, based in New York is the largest wireless carrier in the United States and the largest provider of TV and the Internet.

The video transmission via wireless and targeted advertising are considered the next field battle to attract customers.

The deal, which includes about $ 300 million of debt AOL will materialize with a tender offer followed by a merger, after which AOL will become a subsidiary wholly owned by Verizon.

The acquisition comes as the media landscape is altered by changes in consumer behavior, as more people see and TV programs over the Internet and through their mobile electronic devices such as phones or tablets. AOL offers a network of exhibition and advertising sales that made it attractive for purchase.

“AOL’s focus on unifying the experience of advertising in different formats such as video, mobile devices and television makes attractive asset because advertisers looking for better ways to reach the audience through the screens, “explained Lauren Fisher, an analyst at eMarketer.

” Verizon’s vision is to offer customers a premium digital experience based on a global platform networking of multiple screens, “she said President and CEO of Verizon, Lowell McAdam said in a statement.