, a company many probably wrote off as dead a few years ago, is actually doing quite well. The company beat expectations and posted revenue of $541.3 million, which is roughly a triple year-over-year improvement on 2012’s second quarter. The company sold about $1.1 billion worth of patents to Microsoft
As part of its aggressive strategy to remake itself and continue life in the black, AOL is also planning to acquire Adap.Tv, a video advertising
company, for $405 million. (The deal is for $322 million in cash and $83 million in stock.)
This acquisition is in line with previous ones, including 5Min Media, Goviral, and even the Huffington Post
, as AOL is looking to make its bones with online video, content, and advertising.
Amir Ashkenazi, CEO, Adap.tv (left) and Tim Armstrong, Chairman & CEO, AOL (right) (Credit: Businesswire)
"There's roughly a $240 billion industry in the TV advertising business, which is going to go from TV to [Internet]-delivered video over the next decade,"AOL Chairman and CEO Tim Armstrong told CNBC. "[Adap.Tv] was built to essentially make that transition for advertisers and marketers and for agencies…to help them move their TV budgets to IP-delivered TV."
Armstrong believes that the company’s efforts, particularly as it pertains to the Adap.Tv buy, will double AOL’s profits in the “video space”.