Verizon denies interest in AOL acquisition

Verizon Wireless, however, may partner with AOL for its digital ad services

Verizon Communications' CEO said Tuesday that the company is not interested in buying AOL, despite a press report indicating that the two companies were in acquisition talks.

"To say that we're having significant acquisition discussions is really not accurate," said CEO Lowell McAdam, at the Citi Global Internet, Media and Telecommunications conference in Las Vegas.

On Monday, the Bloomberg news service, citing anonymous sources, reported that Verizon was in early informal talks with AOL to acquire the company.

The two companies, however, may yet be discussing a partnership that would incorporate AOL's digital advertising services into the mobile video service offered by Verizon Wireless.

"I think AOL along with lots of other media companies are potential for us to do partnering with on a commercial basis," McAdam told investors.

Bloomberg also indicated that partnership talks may have taken place.

AOL's digital advertising services could be a good fit for Verizon Wireless, a subsidiary of Verizon Communications that provides cell phone service to over 106 million customers.

While AOL came to prominence as one of the first commercial providers of consumer Internet access, the company has shifted its strategy in the past decade to focus on becoming an online media company, acquiring highly trafficked Web sites such as Huffington Post and TechCrunch. It has also built up considerable expertise in targeted online ad delivery. The company draws about 250 million unique visitors to its sites every month.

The market for mobile advertising is growing rapidly. This year, mobile advertising revenue will increase by more than 5 percent to $189 billion, according research firm eMarketer.

Verizon Wireless may also feel the competitive pressure to acquire more customers. Last year, chief rival AT&T purchased DirecTV for $50 billion. DirecTV serves about 50 million customers with its satellite-based television service.

In addition to advertising revenue, AOL also maintains a legacy dial-up Internet service, which is still used by over 2 million subscribers.

Both Verizon and AOL declined to comment for the story.

Joab Jackson covers enterprise software and general technology breaking news for The IDG News Service. Follow Joab on Twitter at @Joab_Jackson. Joab's e-mail address is Joab_Jackson@idg.com

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags business issuesAOLverizonMergers and acquisitions

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Joab Jackson

IDG News Service
Show Comments

Cool Tech

Crucial Ballistix Elite 32GB Kit (4 x 8GB) DDR4-3000 UDIMM

Learn more >

Gadgets & Things

Lexar® Professional 1000x microSDHC™/microSDXC™ UHS-II cards

Learn more >

Family Friendly

Lexar® JumpDrive® S57 USB 3.0 flash drive 

Learn more >

Stocking Stuffer

Plox Star Wars Death Star Levitating Bluetooth Speaker

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?