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
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