The Big Lesson of the Verizon-AOL Deal
What the big Verizon-AOL deal says about the future of tech
By the Dave Partners Team
The tech news world is buzzing with the news that Verizon has purchased AOL for $4.4 billion. It’s a union of two long-standing giants, and the Internet has responded with plenty of jokes about dial-up and nostalgic ‘90s commercials.
Still, the Verizon-AOL deal is worthy of more serious attention, in part because of what it says about where tech is headed. For one thing: It’s been made abundantly clear that Verizon is interested in AOL as a media company.
Verizon has already launched one media company, Sugarstring, which subsequently folded after becoming the center of media controversy prior to launch. Now, they’ll be acquiring TechCrunch (one of our favorite publications) and the Huffington Post, gaining the tools to achieve their media mission, along with two reputable and well-known brand names and teams.
Content has come up in the world in recent years. Not long ago, intelligent observers were predicting the end of journalism as we knew it. Now, with high-profile firms like Andreessen Horowitz betting big on Buzzfeed, a media company is a smart acquisition.
There’s lots to parse in the Verizon-AOL deal, to be sure. But this development is interesting for what it says about the industry — and for the possibility that we’ll see more tech giants making big investments in media soon.