Verizon to Purchase AOL - ISSUE 01:25 5:13:15

ISSUE 01:25   5:13:15

Verizon to Purchase AOL

Verizon to purchase AOL for $4.4 Billion ::

Big Red is getting bigger. It was announced on Tuesday that Verizon will be pur-
chasing internet giant AOL for $4.4 billion. The move unites one of the largest inter-
net content companies with the provider of the largest nationwide network. Below,
we’ll examine the details of the purchase and what it means for Verizon, what it
means for AOL, and what it means to consumers.

THE DEAL

Although many details of the deal are still to be released, it’s confirmed that Verizon
will pay a hefty $50 per share to take ownership of AOL with the total cash payment
coming to $4.4 billion. The move is part of Verizon’s expansion into delivering video
content to its subscribers, not unlike the current FiosTV service currently in 5.6 mil-
lion homes. But what else is up Verizon’s sleeve with this purchase?

WHAT DOES THIS MEAN FOR VERIZON?

With this buyout, Verion aims to be the top name in mobile video distribution. With
the puchase, the mobile giant will have access to all of AOL’s original video con-
tent as well as its technology for advertising through video distribution. This means
that Verizon will one day soon be able to distribute video content services through
its mobile network exclusively to its subscribers. Along with that comes AOL’s key
money maker: advertising. Over the recent years, AOL has mastered the “art” of
direct advertising to its users, something that Verizon hopes to fold into its plan for
video distribution. This added revenue stream from digital video-over-wireless con-
nections is what has Verizon’s attention, hoping to greatly build on its $127 billion in
profits it saw last year. With Verizon constantly expanding its network and updating
the 4G capabilities, the added revenue could help speed some of it along.

WHAT DOES THIS MEAN FOR AOL?

AOL will still exist, it will just be another faction of the ever-growing Verizon. The
carrier’s massive content networks will be key in AOL expanding and growing its
online brands, such as Engaget, Tech Crunch, and The Huffington Post. Ever since
the end of the dial-up days, the leader of dial-up subscribers has been constantly
redefining itself into a content producer and under the recent leadership of former
Google Executive Tim Armstrong, AOL plans to continue that growth as a part of
Verizon. The partnership of a content and advertising producer and the largest pro-
vider of the fastest network makes the deal a mutually beneficial relationship, with
little to no down sides.

WHAT DOES THIS MEAN FOR YOU?
Verizon and AOL see this purchase as the first step in becoming a media giant,
providing the best streaming content over the best streaming network. With that
added connection, they hope to upscale their revenue through advertising. What
does this mean for the consumer? Simply put: Verizon subscribers will have ac-
cess to streaming content directly on their devices without needing to go through
third-party services such as Hulu or Netflix (at least that’s the plan), along with the
advertising that will come with. It’s expected that Verizon will announce this type of
service some time this summer, as the AOL purchase deal will be finalized and offi-
cially complete early this fall.

This purchase is yet another step Verizon is taking to becoming the leader in content
delivery. And if everything goes as Big Red plans, in the coming years they will be-
come the next media and advertising superpower and as AOL CEO Tim Armstrong
puts it, they will spawn “next generation of media through mobile and video.”
We’ll just have to wait to see if it all comes true.

Phree

Developed by OTM Technologies, Phree is a bluetooth
stylus which aims to be your go-to note taking and task
managing tool paired with your smart device. The idea
of Phree is the same that draws people to phones such
as the Galaxy Note: the convenience of hand writing to
communicate with your device. However, where current
stylus’ are limited by the frames of the screen, Phree takes
another approach. It’s bluetooth capabilities makes it able
to be used on any surface, effectively giving you infinite
space to write freely. The device also features a small dis-
play which allows you to receive notifications such as calls
and texts, and allows you to respond simply by tapping
the message icon, for example, and writing a message,
then sending it off. The hopes of OTM is that Phree will be
in the pockets of everyone, and will be used as a conve-
nient way to quickly take notes, write messages, and inter-
act with your smart device on a more personal scale.

AOL has a “digital prophet.” David Shing, also
known as “Shingy” is employed by AOL to literal-
ly travel the world seeking new trends, hype, and
new ventures for the company.                              Pacemaker was an iPad
                                                           app that has recently
                                                           popped up on the
                                                           iPhone     App     Store.
                                                           Pacemaker takes the
                                                           almost infinite playlist on Spotify and
                                                           helps you DJ by finding songs that
                                                           have a similar tempo and beat, making
                                                           your phone a successful companion to
                                                           DJ-ing your favorite mixes at the party.

  Before becoming the internet media giant that it is now, AOL was known as Control Video
              Corporation. What main medium was the sole focus of CVC?

                                 A.) Video Games B.) Music
                                  C.) Movies D.) Television

    Last week’s answer: When it first started in 1947, LG (then Lak-Hui Chemical Industrial
                          Corp.), produced cleaning detergents.