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May 12, 2015

The Verizon and AOL 4$4.4billion deal to create a technology media monolith

why verizon  is acquiring  AOL for $4.4billon"








 This chart compares dial up, broadband and mobile eras of the internet ecosystem.  against iphone 4G subscribers vs Netflix subscriber base in US. if you study this chart  for long enough.. you will realise why Verizon Communications is buying AOL for $4.4 billion

 The rational of Verizon’s $4.4 billion deal to acquire AOL is because of that one device that is changing the world in ways that was never though to be possible. MOBILE . 

Verizon needed arsenal at its command to build up its nascent video business and advertising across consumer's mobile phones .. and the best way to get them was AOL which has transformed itself into a media company and invested heavily in technology that automates the sale of online advertising process  

 Verizon's woes with 130 million subscribers has of late been typically those  of all legacy carriers , whose business is threatened by newer entrants and competitors  that are finding alternative means of connecting and hooking up to the internet via wi fi mesh networks and facing competition from giant players like  google  who have started to challenge them at their own game 

Read the full analysis of the Verizon and AOL Merger