Can you hear me now? You’ve got takeover. In a stunning move, Verizon has purchased AOL for $4.4 billion. As part of the deal, AOL will become a subsidiary of Verizon. Tim Armstrong, AOL’s CEO, will continue to lead AOL after closing.
In a memo to AOL staffers, Armstrong did his best to make it sound good for all involved:
I have been a buyer of AOL over the last 5 years – and that is an investment in one thing – our talent. We have reviewed every hire coming into the company over the last 5 years and we have taken extraordinary risks and faced extraordinary challenges over the last 5 years. There is nothing more meaningful than watching our team turn-around this great company and restoring it to growth when most people had left it for dead.
Your job and what you do on a daily basis should be enhanced by the market opportunity this deal is targeted to capture. The simple answer to the question of ‘what does this mean for you?’ should be, ‘I just got more resources, more support and more growth opportunity.’
Of course everything is more “simple” when you’re the CEO. We highly doubt AOL staffers share Armstrong’s excitement.