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

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?