AOL has announced plans to acquire the broadband and entertainment companies O2 and WME-IMG for $600 million.
The acquisition is expected to be completed in the second quarter of 2018, according to a regulatory filing with the U.S. Securities and Exchange Commission.
O2 and Warner Music Group, which is owned by AOL, have been valued at $500 million each, while WME, the world’s largest music rights and distribution company, has been valued for about $300 million.
The deal includes a $400 million purchase of AOL’s media assets, according the filing.
O1, the music business, has not yet announced an offer, but the company has previously announced plans for a “massive consolidation” in the music industry that will likely include other businesses.
“We are proud to invest in a global music and entertainment network,” AOL CEO Tim Armstrong said in a statement.
“We believe this acquisition will help us bring our vast music catalog and the value of our online and offline services to a whole new audience.”
O2 has been the fastest growing wireless carrier in the U.
“It has had more than 200 million customers, a strong record-breaking quarter and has a proven track record of delivering the best mobile and Internet experience,” said David Crain, AOL’s chief content officer.
“I am thrilled that we will be partnering with a company that has such a strong history in the mobile market, and that has the potential to help us drive further growth in our global wireless and content businesses.”
The deal will allow AOL to “focus on expanding our network of over 1,000 million people across the United States and the globe, where our customers already live and work,” Armstrong said.
“As part of this, we will build on the tremendous strengths of our mobile and media services, and combine those with AOL’s existing brands to deliver an even stronger network.”
Armstrong said the combination will allow O2 to deliver a new and differentiated experience to the consumer and business community.
“The combination will give us unprecedented control over the consumer experience, including the content they consume,” Armstrong wrote in the statement.
The deal follows AOL’s acquisition of a stake in O2’s mobile and entertainment business, and its decision to merge with rival Verizon.
The companies said the combined companies will offer “unmatched mobile and content capabilities, as well as an unmatched experience in mobile commerce and advertising.”
The combined company is expected start operating in 2021.