Verizon Inks $4.4 Billion Agreement To Buy AOL

Posted by Nate Wek, NPR on

Verizon Communications has agreed to pay $4.4 billion to buy AOL Inc.

In a press release, Verizon said the all-cash acquisition will help build its digital and video platforms.

The Wall Street Journal explains:

"Verizon has said it plans to launch a video service focused on mobile devices this summer. The company has offered few details, but last month Chief Financial Officer Fran Shammo said the service will offer a mix of paid, free and ad-supported content and won't try to replicate traditional TV.

"The service will feature shorter snippets rather than 30 or 60 minute shows. It also could include multicast programming—a sort of broadcast service that uses cellular airwaves—for delivering live content like sports and concerts, along with on-demand viewing."

"Verizon's vision is to provide customers with a premium digital experience based on a global multiscreen network platform," Lowell McAdam, Verizon chairman and CEO, said in a statement. "This acquisition supports our strategy to provide a cross-screen connection for consumers, creators and advertisers to deliver that premium customer experience."

Pending regulatory approvals, the companies said they expect to close the deal this summer.

Update at 7:58 a.m. ET. What Is AOL Today?

Many people probably still associate AOL as one of their first Internet service providers. But more than two decades later, AOL is more of a media company: It owns The Huffington Post, TechCrunch, MapQuest and Moviefone. According to the company, it is the fourth largest online property in the U.S. with 200 million monthly visitors to its sites.

Web_EmailNewsInfo_330x85.png art and culture link banner image sdpb food pages link children and education link banner image sdpb news and information link image science and technology posts link sports and leisure link banner image

The Latest from NPR News

Texas Pulls Out Of Federal Refugee Resettlement Program

Gov. Greg Abbott's announcement means that aid agencies will have to deal directly with the federal government...

For Rosh Hashana, A Matzo Ball Soup By Way Of Mexico

Matzo ball soup is a classic straight from Eastern Europe. But not all Jews from the region came to the New World...

MUSIC: Why A River's Sad But Beautiful Song Is Big On Social Media

In times of drought — like now — two neighboring states argue over rights to the Cauvery River's water. A musician...

Samsung's Latest Headache: Reports That Washing Machines May Explode

Samsung is advising owners of certain top-loading washers to use only the delicate cycle when washing bulky items...

Feminist Bookstore Slams 'Portlandia' And Says Show Can No Longer Film There

The staff of In Other Words say the TV comedy is "diametrically opposed to our politics and the vision of society we'...

The People's Guide To Navigating Racial Awkwardness

What are the best strategies for responding to uncomfortable racial comments? We asked, you delivered. Here are some...