Verizon approaches AOL on potential deal - report

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Reuters

(REUTERS) – Verizon Communications approachedAOL 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.

AOL shares  AOL -1.65%  jumped 12% 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  VZ -0.83%  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 [fortune-stock-symbol=”YHOO”] 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.