Verizon has completed its acquisition of AOL only six weeks after it was announced. The turnaround of the acquisition was quick given that there were no monopoly concerns that arose as Verizon and AOL operate in separate industries. Now, Verizon is left trying to integrate AOL into Verizon and develop synergies that can lead to improved profits for both divisions.
Verizon was attracted to AOL primarily for its advertising platform that allows companies to digitally advertise using a mobile first platform that s expected to capture additional revenues. AOL also has programmatic technologies which allows advertisers to place ads by matching buyers and seller of digital ad space.
Verizon is thought to want to monetize this technology further and integrate it with live sports using its own offerings to build a seamless advertising platform reports Ivan Ong on about.me. The announcement regarding the acquisition indicated that the technology will work on any platform but will work best over Verizon networks.
Verizon’s acquisition of AOL is a different strategy than the pending acquisitions of other companies by telecommunications companies including AT&T’s acquisition of Dish Network. Verizon is attempting to capture a growing market and develop synergies, while AT&T is attempting to expand their customer base offering more of the same services.
AOL also has extensive web properties that generate revenue for the business. One of these properties, The Huffington Post, recently announced that they are extending their contract with founder Arianna Huffington. In addition to the advertising technology that AOL brings to the table, Verizon has indicated that they have no plans to dispose of the web properties that AOL owns.