It was bound to happen. Yes, at some point we all expected a media giant to buy the once powerful AOL. That media giant is Verizon Communications Inc. and they will be buying AOL for “just” $4.4 billion. As the Wall Street Journal reports, the deal is, “aimed at advancing the telecom giant’s growth ambitions in mobile video and advertising.”
The sale is an all-cash deal that values AOL at $50 a share. That is, apparently, a 23% premium when you look at the company’s “three-month volume-weighted average price.” As someone who well remembers the AOL CDs that came in the mail or sat at the checkout counter at my local record store (remember those?!?) I am a bit mixed about this. Then again, in life, change is the only constant. That is especially true in the technology sector; we will see what this deal means for all of the companies and the consumers involved.
Read more about the Verizon purchase here.