Verizon announced its purchase of AOL this week for $4.4 billion ($50 per share). AOL still has over 2.2 million dial-up customers. But the real value to Verizon is some of AOL?s behind-the-scenes technology. The deal will reportedly help support the telecom giant?s wireless and over-the-top video strategy, as well as give them control over content, including major AOL web properties like the Huffington Post and TechCrunch.
The New York Times? take on this is that ?Verizon is looking to gain the company?s powerful but little-known mobile video and advertising technology.? The deal gives Verizon access to AOL?s growing ??Platforms? group ? which specializes in automated ad sales on other publishers? properties.?
This is the 2nd time that AOL has been involved in a huge deal with a media giant. The first was the infamous Time Warner-AOL merger in January 2000. A few months later, the dot-com bubble burst and, as Fortune put it, that deal went down as the, ?worst merger of all time.? Fast Company?s perspective on both deals includes copies of AOL press releases from 2000 and 2015.
Meanwhile, you can read more analysis of Verizon?s plans for the newly acquired AOL here.