BUSINESS

Verizon Approached AOL About Potential Deal: Bloomberg

FILE - In file photo taken Aug. 21, 2010, a Verizon sign is shown at New Meadowlands Stadium in East Rutherford, N.J. On Tues
FILE - In file photo taken Aug. 21, 2010, a Verizon sign is shown at New Meadowlands Stadium in East Rutherford, N.J. On Tuesday, Jan. 14, 2014 a three-judge panel of the U.S. Court of Appeals for the D.C. Circuit affirmed that the FCC had authority to create open-access rules. But in a setback for the Obama administration's goal of Internet openness, the court ruled that the FCC failed to establish that its 2010 regulations don't overreach. Under so-called net neutrality rules adopted in 2010 by the Federal Communications Commission, wired broadband providers such as Comcast, Time Warner Cable and Verizon were barred from prioritizing some types of Internet traffic over others.(AP Photo/Peter Morgan)

(Reuters) - Verizon Communications Inc approached AOL Inc about a potential acquisition or joint venture to expand its mobile-video offerings, Bloomberg reported, citing people with knowledge of the matter.

Verizon has not made a formal proposal to AOL, and no agreement is imminent, Bloomberg said, citing people who asked not to be named. (http://bloom.bg/17enf1h)

AOL shares jumped 12 percent to $50.05 after the bell.

A spokesman for Verizon declined to comment.

A joint venture, if formed, would focus on advertising technology, Bloomberg cited one of the people as saying.

Verizon is seeking expertise in online content, mobile video and advertising, according to one of the Bloomberg sources.

The programmatic ads platform could be paired with a future online-video product, Bloomberg said, quoting two people familiar with the matter.

Last year, activist investor Starboard Value LP urged Yahoo Inc to consider a strategic combination with AOL to save more than $1 billion in costs.

AOL did not immediately respond to requests for comment after regular business hours.

(Reporting by Sudarshan Varadhan and Devika Krishna Kumar; Editing by Bernard Orr and Lisa Shumaker)

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