AOL's Tim Armstrong Reportedly Reaching Out To Yahoo

AOL CEO Tim Armstrong will reach out "informally" to Yahoo on behalf of parent company Verizon for a possible acquisition, according to one report Monday.

Verizon CEO Lowell McAdam suggested an informal discussion would take place during last week's conversation with CNBC "Mad Money" Jim Cramer. "We have to understand the trends," McAdam told Cramer. "But then at the right price, I think marrying up some of their assets with AOL and the leadership would be good." 

Armstrong will take "a lead in preliminary discussions," the report added.

During Yahoo's fourth-quarter 2015 earnings call, CEO Marissa Mayer confirmed to analysts that the company would explore a possible sale of its core Internet business. In a press release statement, the company explains it plans to engage in "qualified strategic proposals."

The two companies were reportedly in talks for a deal back in 2014, before Verizon acquired AOL. Verizon continues to move toward all digital by selling off its analog hardwire phone business to other suitors.

The Cisco Visual Networking Index estimates that smart mobile devices and connections will represent 72% of total mobile devices and connections by 2020, up from 36% in 2015.

Verizon, which has been making a steady push into advertising to capitalize on its expertise in mobile phone service and Internet connections, has its own numbers. The company estimates that mobile will account for about 80% of consumers’ media consumption time in the coming years, as U.S. mobile ad spending rises by 38% in 2016 to $42 billion, according to estimates from eMarketer.

1 comment about "AOL's Tim Armstrong Reportedly Reaching Out To Yahoo".
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  1. Bob Gordon from The Auto Channel, February 9, 2016 at 11:22 a.m.

    Judge Green where are you when we need you???

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