How important is media to telecomm companies? Important enough to spend $4.4 billion!

Last week, Verizon, a telecomm giant, bought Aol, a media mammoth, for $4.4 billion dollars. The deal is yet to be approved though. Aol was spun off by Time Warner in 2009 and has become a major player in the digital media and advertisements industry. The fact that the telecomm world is significantly interested in media, is not new. In fact, Verizon’s biggest competitor AT&T bought DirecTV in the past year or so. Verizon has already invested in the digital content industry; they have NFL Mobile, a service/app that has a lot of digital content and a key feature in which Verizon customers can watch NFL games. Aol also brings the Huffington Post, Engadget, and TechCrunch to the table. But, advertisements may be the thing Verizon wants most.

Verizon CEO Lowell McAdam hopes that Aol’s advertising service will grow and become a good revenue stream for Verizon. Aol CEO Tim Armstrong shares the same hope, in his letter to Aol employees he said, “AOL is back and now we are joining forces with Verizon to build the best media technology company in the world.” One by Aol, Aol’s advertisement service will be huge stream of cash for Verizon. One by Aol is the solution for advertisers that allows them to design their wanted advertisement and also manage their data. Check out his video on the One by Aol: http://avideos.5min.com/2/720/5181720/518171950.mp4. Overall, I think Verizon got a great deal when they bought Aol or $4.4 billion.

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