Verizon Buys AOL, Because Two Lumbering Dinosaurs Who Can't Figure Out The Modern Internet Must Be Better Together

from the this-might-get-interesting dept

You might recall that last October, Verizon tried its hand at getting into the media business with the launch of a tech blog by the name of Sugarstring. The bizarre foray into media didn't last long; editors quickly complained that Verizon was prohibiting them from talking about huge tech issues Verizon played a starring role in, ranging from net neutrality to domestic surveillance. After the media ridiculed the hell out of Verizon's ham-fisted disregard of editorial firewalls (or just common sense), the website was quietly shuttered, with the telco saying it was just a "pilot project" it was moving on from.

So what is Verizon's media plan 2.0 going to be? Apparently, it's a little something called AOL. Verizon this morning announced that the company would be buying AOL for around $4.4 billion, stating the acquisition would be supporting the telco's over the top video and Internet-of Things ambitions (read: they wanted AOL's ad empire):
"Verizon is a leader in mobile and OTT connected platforms, and the combination of Verizon and AOL creates a unique and scaled mobile and OTT media platform for creators, consumers and advertisers. The visions of Verizon and AOL are shared; the companies have existing successful partnerships, and we are excited to work with the team at Verizon to create the next generation of media through mobile and video."
Nobody on Earth flubbed the dial-up to broadband era transition quite as spectacularly as AOL did, so being acquired by a telecom operator ten years too late isn't without it's irony. Equally ironic is Verizon suddenly acquiring 2.2 million new dial-up subscribers at a time when it's desperately trying to back away from the fixed-line broadband business (how many DSL lines would $4.4 billion upgrade?). But AOL's a very different company these days, and the acquisition makes sense as a mobile advertising play, even if it just feels weird to see the two companies snuggle up in bed together.

Apparently, current AOL CEO Tim Armstrong will remain in command under the freshly-acquired AOL, which will operate as an independent Verizon subsidiary. There's no declaration of retained editorial independence anywhere, but that may not mean much. From a memo from Armstrong sent to all AOL employees this morning:
"The leadership at AOL is staying and I am staying – enthusiastically, and we made that part of the deal. We have the opportunity to build a unique and globally scaled media technology company with the scale and resources we need to make that happen. Verizon and AOL are very large partners today – in content, in ads, and in the technology. We know their team well and they know our team well. The cultures share very similar values and are both working on very similar ways to do good while doing well."
Do those "values" and "doing good" include propping up Verizon's role as one of the most vocal and obnoxious opponents to net neutrality on the Internet? Stay tuned. There's some chatter that Verizon may want to spin off or sell off the content companies, just using the remaining ad empire to fuel the telco's new wireless-focus Internet video subscription service expected to launch sometime later this year. If retained, you'd like to think Verizon will play it smart and not aggressively meddle in the daily dealings of websites like The Huffington Post, Engadget, or TechCrunch, but with the telco's generation-long history of aggressively bad ideas (most recently being a foray into undeletable super cookies), you just never know.
Hide this

Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.

Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.

While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.

–The Techdirt Team

Filed Under: ads, internet, mergers
Companies: aol, verizon


Reader Comments

Subscribe: RSS

View by: Time | Thread


  1. icon
    Ninja (profile), 12 May 2015 @ 8:59am

    even if it just feels weird to see the two companies snuggle up in bed together

    I hear you. I'm having trouble picturing dinosaurs mating.

    link to this | view in thread ]

  2. icon
    Violynne (profile), 12 May 2015 @ 9:16am

    Goodbye, Engadget.

    You were a wonderful site all these years.

    If you're not separated by the purchase of AOL, then Verizon will make sure you become absolutely useless.

    link to this | view in thread ]

  3. icon
    dfed (profile), 12 May 2015 @ 9:29am

    Newsflash: Verizon is now sending upgrade notices to their subscribers in the form of CD Roms that can be run on your home PC! Now get 2 Gigs of Data Free for the first month!

    link to this | view in thread ]

  4. identicon
    Anonymous Coward, 12 May 2015 @ 9:36am

    Two turkeys don't make an eagle.

    link to this | view in thread ]

  5. icon
    DannyB (profile), 12 May 2015 @ 9:37am

    It is NOT ten years too late for Verizon to acquire AOL

    It is twenty years too late.

    link to this | view in thread ]

  6. identicon
    Anonymous Coward, 12 May 2015 @ 9:41am

    The visions of Verizon and AOL are shared;

    To make hand over fistsfull of cash while simultaneously screwing as many customers as possible.

    link to this | view in thread ]

  7. identicon
    Anonymous Coward, 12 May 2015 @ 9:42am

    Re:

    Even dinosaurs mating gave birth to young. Verizon and AOL are more likely to devour their young.

    link to this | view in thread ]

  8. identicon
    Anonymous Coward, 12 May 2015 @ 9:50am

    At least AOL is fire-sale cheap, a tenth of the price that Microsoft bought Yahoo for a few years ago ... or thought they had in the bag.

    But will this Verizon-AOL purchase end up the same way as Microsoft/Yahoo or Comcast/Warner-Cable?

    link to this | view in thread ]

  9. identicon
    Anonymous Coward, 12 May 2015 @ 9:51am

    Re:

    They are going to review Verizon phones and services. They will all be wonderful.

    link to this | view in thread ]

  10. icon
    Michael Becker (profile), 12 May 2015 @ 9:52am

    Re: It is NOT ten years too late for Verizon to acquire AOL

    For some of us 10 years ago is still the 90s. Now get off my lawn kids!

    link to this | view in thread ]

  11. identicon
    Anonymous Coward, 12 May 2015 @ 9:53am

    Just in case you haven’t cancelled your AOL account we'll give you yet another reason.

    link to this | view in thread ]

  12. identicon
    Anonymous Coward, 12 May 2015 @ 10:09am

    Re:

    Not just subscribers. Everyone in their service area will be offered that with signup.

    link to this | view in thread ]

  13. identicon
    Rich Kulawiec, 12 May 2015 @ 10:13am

    $4.4 billion, eh?

    link to this | view in thread ]

  14. identicon
    Anonymous Coward, 12 May 2015 @ 10:28am

    More pre-installed apps on Verizon cellphones.

    link to this | view in thread ]

  15. identicon
    Anonymous Coward, 12 May 2015 @ 10:29am

    Re: Good Buy!

    Tech Crunch and The Huffington Post as well.

    link to this | view in thread ]

  16. identicon
    Anonymous Coward, 12 May 2015 @ 10:30am

    Re:

    I miss the free coffee cup coasters that used to come from AOL.

    link to this | view in thread ]

  17. icon
    Pronounce (profile), 12 May 2015 @ 10:48am

    AOL is Verizon's Sony

    U.S. government loves media companies. As observed when Sony got so much lovin' by the spooks after their hack (while the average American pensioner that has their ID stolen and retirement account drained can't get so much as a nod to their plight). (And don't try to tell me the NSA doesn't have the identity of every major crime syndicate working the cybercrime angle in their trove of data they've hoovered.) Verizon needs some Sony type lovin' from the Feds if they want to push their agenda through.

    Remember it's all a game of money and power.

    link to this | view in thread ]

  18. icon
    John Fenderson (profile), 12 May 2015 @ 10:57am

    Re: Re:

    I lined most of a wall in my office with them. In total, AOL had mailed me right around 500 of those damned disks. I still find them lurking in the bottom of storage boxes.

    link to this | view in thread ]

  19. icon
    Karl Bode (profile), 12 May 2015 @ 10:58am

    Re: $4.4 billion, eh?

    Crazy talk!

    link to this | view in thread ]

  20. identicon
    Anonymous Coward, 12 May 2015 @ 11:26am

    Re: Re: Re:

    Ya know, there's always ebay.

    link to this | view in thread ]

  21. identicon
    Unanimous Cow Herd, 12 May 2015 @ 11:29am

    Maybe..

    Maybe they should invest of in some emerging technologies like that new fang-dangled reticulated electric speaking telegraph.

    link to this | view in thread ]

  22. icon
    DannyB (profile), 12 May 2015 @ 11:29am

    It's bandwidth envy

    Verizon is envious of the speeds that dialup AOL users once enjoyed and would like to improve their network to match.

    link to this | view in thread ]

  23. identicon
    Anonymous Coward, 12 May 2015 @ 11:52am

    Re: Re: Re:

    But it was great during the floppy-disk era 20 years ago, with AOL passing out reusable storage media that would have otherwise cost about $1 each back then.

    It was just a shame that the 1.44MB floppy was the last (and biggest) non-propietary portable magnetic storage medium -- before standards-fragmentation allowed CDs to completely take over the market formerly occupied by inherently-rewritable magnetic disks.

    After that, AOL disks went straight to the trash.

    link to this | view in thread ]

  24. icon
    John Fenderson (profile), 12 May 2015 @ 12:42pm

    Re: Re: Re: Re:

    I don't do eBay. Besides, there's a much better use for them: making a really good light show

    link to this | view in thread ]

  25. identicon
    phils, 12 May 2015 @ 1:38pm

    What -- AOL is still around??

    link to this | view in thread ]

  26. icon
    madasahatter (profile), 12 May 2015 @ 4:01pm

    Re:

    Don't insult turkeys or vultures lol, The stench from this deal means no Verizon cell service or America Offline.

    link to this | view in thread ]

  27. icon
    nasch (profile), 12 May 2015 @ 4:50pm

    Re: Re: Re: Re:

    But it was great during the floppy-disk era 20 years ago, with AOL passing out reusable storage media that would have otherwise cost about $1 each back then.

    Did they seriously mail out rewritable CDs?

    link to this | view in thread ]

  28. icon
    nasch (profile), 12 May 2015 @ 4:51pm

    Re:


    But will this Verizon-AOL purchase end up the same way as Microsoft/Yahoo or Comcast/Warner-Cable?


    Or AOL/Time-Warner...

    link to this | view in thread ]

  29. icon
    James Burkhardt (profile), 12 May 2015 @ 8:31pm

    Re: Re: Re: Re: Re:

    No. thats the point, the floppy disks they mailed out were reusable. the CD was not.

    link to this | view in thread ]

  30. icon
    James Burkhardt (profile), 12 May 2015 @ 8:35pm

    Re: AOL is Verizon's Sony

    Ah. You again. I will try to tell you that even if the NSA has critical metadata on cybercrime, it does not follow that they A) Know they have that data, B) can find that data, C)Have enough of it to determine the identity of everyone involved

    link to this | view in thread ]

  31. icon
    orbitalinsertion (profile), 12 May 2015 @ 11:00pm

    Re: Re:

    If AOL bought Verizon.

    link to this | view in thread ]

  32. icon
    orbitalinsertion (profile), 12 May 2015 @ 11:02pm

    Re: Re: Good Buy!

    And they will probably make an ugly mess of them the way CBSi made an ugly mess out of C|NET properties.

    link to this | view in thread ]

  33. icon
    orbitalinsertion (profile), 12 May 2015 @ 11:04pm

    Maybe if they would spin off all that dial up to someone other than Frontier...

    link to this | view in thread ]

  34. identicon
    Anonymous Coward, 13 May 2015 @ 12:04pm

    *Raises Glass to AOL*

    At first I was mad a few weeks ago when they killed off WoWInsider.

    Now, I'm glad they did so Verizon wouldn't get their filthy hands on it.

    I think I'mma go see what I can pull out of the Internet Archive for that site, before it gets yanked completely.

    link to this | view in thread ]


Follow Techdirt
Essential Reading
Techdirt Deals
Report this ad  |  Hide Techdirt ads
Techdirt Insider Discord

The latest chatter on the Techdirt Insider Discord channel...

Loading...
Recent Stories

This site, like most other sites on the web, uses cookies. For more information, see our privacy policy. Got it
Close

Email This

This feature is only available to registered users. Register or sign in to use it.