AOL Deal Marks Latest Digital Ad Push

AOL's agreement to buy online-ad firm Quigo caps a $1 billion acquisition spree aimed at helping the Time Warner Inc. unit transform itself from a subscription-based Internet-service provider to a digital-advertising network. It promises to be a tough slog. Advertising revenue at AOL rose just 13% in the third quarter, a slowdown from the previous three months, and Time Warner yesterday said AOL expected to post even lower advertising growth in the fourth quarter.

Last word: Quigo is the latest in a string of acquisitions for AOL this year, including Third Screen Media (mobile ad network) and Tacoda (behavioral targeting network). All of these acquisitions make sense as they build out their new strategic foundation, "Platform A". The acquisitions were the easy part, the hard work starts now. Insiders wonder if AOL has the leadership needed to make each of these disparate partners work together in the next 12-18 months.

Read the full story in the Wall Street Journal