Buy-outs happen all the time. The interesting thing about this is what usually happens after the conglomeration. Things like that almost always change the dynamics and the method of operation of the companies. Even though AOL and Verizon are both involved in the distribution of communication and media, the services they provide are quite varied.
At $50 per share, this should be an interesting absorption for Verizon. The media giant has the chance to traverse itself into a completely different aspect of the media and communication industry.
The days of dial-up internet are far behind us and an industry that provides an outdated service or product doesn’t always survive too long. The future functionality of AOL is what will truly determine if Verizon is in fact paid the right amount for the buy-out.
Looks like Verizon is heading for the ultimate goal of stability through consolidation, at least for the next decade. $4.4 billion is a major acquisition and should be able to be provisional to Verizon for a better status in the market. Either way, whatever the changes Verizon brings about should be frills that will affect their consumers for the better. After all, consumer satisfaction it what culminates to a better turn in the market.
Image: Via Flickr/Jason Persse