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Verizon approaches AOL on potential deal – report

(REUTERS) – Verizon Communications approached AOL 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) 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) 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.