Verizon Communications Inc. (NYSE:VZ) CEO Lowell McAdam denied that the company is into efforts of acquiring AOL, Inc. (NYSE:AOL). In a statement made at an investor’s conference, McAdam noted that suggestions of “significant acquisition discussions isn’t accurate.”
A report by Bloomberg cited unnamed sources as saying that Verizon is into a planned expansion of its mobile video offerings and tapping AOL as a potential acquisition to help with the expansion. The report, however, noted that Verizon Communications Inc. (NYSE:VZ) have not approached AOL with any formal offer and agreements are therefore not yet in sight. Apart from mobile video, the report also noted that Verizon is also interested in expanding other areas in the internet, namely content and advertising. A takeover of AOL, according to the report, would give Verizon additional internet properties as well as paying subscribers. Another report likewise cited an unnamed industry source that there were talks between Verizon and AOL, but it was not clear whether it pointed to acquisition.
Despite denials of an AOL takeover, some observers believe that Verizon Communications Inc. (NYSE:VZ) will actually benefit from the acquisition. AOL has the technology for programmed automated advertisements, which Verizon can use to monetize its own data on the spending habits of millions of its customers by selling advertising through digital platforms and TV’s. Last year, Verizon acquired IntelMedia and OnCue, which gave the company a lead in Internet TV business. It also acquired EdgeCast Networks in 2013, giving it a deeper hold of online content delivery business.
Ruling out imminent acquisition talks, McAdam however noted that AOL together with a host of other media companies are potentials for Verizon Communications Inc. (NYSE:VZ) to do partnerships with. “I see us as more of a partner with media companies than a buyer of content”, McAdam said.
This article has been written by Nonito Guntan.