WASHINGTON — AOL is trying to wean itself off of its longtime dial-up subscription service and is planning to buy an electronic trading platform to help companies advertise on video websites.
Reuters reports that this deal with Adap.tv will cost $405 million and will mark the most recent large acquisition yet under CEO Tim Armstrong. He did engineer buying Huffington Post for $315 million.
Their second-quarter revenue surprised some and was higher than expected due to display, search and ads from third-parties. AOL’s focus is more on advertising revenue from marketers through buying online.
This means AOL is competing with Yahoo, Google, Facebook and Twitter for this advertising money.