1. Are there potential problems you foresee with Verizons acquisition of AOL? Justify your answer.

Marni Walden, Verizon's President of product innovation and new businesses "We did start out with a number of discussions around a joint venture, but we quickly saw there was a vision that we both believed in where we could be the No. 1 global media technology company, and if we put our assets together, we thought we could make something very, very big out of this. We have a number of assets that we've been acquiring at Verizon and we're contributing those to this business, and we believe this is going to be the value we can deliver to our shareholders and the future of Verizon." Moderator: "Well, what does it mean to be the number one global media technology company? Explain that." Marni: "Yeah, so Tim, do you want to talk about your vision, and then I'll jump in." Tim Armstrong, AOL CEO "So, first, it starts with how big this market is in general. I think the internet's going to add a couple billion people to us, specifically through mobile, within the next couple of years. And then there's what we call the 40/40 opportunity, which is 40 billion dollars going to mobile, and 40 billion going to video. And I think from where Verizon and AOL sit, Verizon is the best network in the world, and has really bridged into media, before the AOL deal, and we're going to sit on top of Verizon with a new set of services, overall. So I think the vision of what we're doing is we get a #1 platform, really the #1 mobile media platform in the world. We're the top 3 in video, and one of the top app platforms. Nobody owns the future of mobile right now and this is the most powerful combination of those two areas mobile and internet together. So, we're really excited." Moderator: "You know, Tim, you said nobody owns it. Do you guys need to own even more assets at this point? There does seem to be consolidation that has taken place of course, in the programmatic ad buying area AOL led that to a certain extent. Do you have to buy even more stuff?" Tim: "Well, we have been a leader in that and I think Verizon's been a real leader in terms of what you're seeing of the NFL deal and Marni can really talk more about that, and what their vision has been overall. But the combinations to assets are powerful. Day One today is Day One and I think our back-to-work philosophy is to really get the companies together and work well, but I think one of the ground-breaking things that happened last year, and I sent our executive team a note about it when I saw it, was the NFL-Verizon deal, and Marni, I don't know if you want to talk about the media part of Verizon, but " Moderator: "You guys gonna interview each other now? Come on!" Marni: "So, hey, let me just comment on future acquisitions. As we've always done, we look for fill-in as it makes sense. We did that with our digital media business so Edge Cast and Up Link we'll continue to look at how do we grow this business, so nothing here to announce. And as Tim said, Day One, we've got a lot of opportunity right in front of us with all of the things we've been working on as individual companies and now as a combined entity, so. And the NFL deal, this is where content becomes so important. We've got to bring premium content to drive audiences, so we know how important that is, so we think our NFL asset is huge; we think obviously all of the content that AOL has Huff Post, in particular we love that part of the business, so we're very excited about how we bring audiences to our business." Moderator: "So why do you love Huff Post and these content businesses, Marni, because many say you don't have enough, enough size to really make a difference and many expect you to get rid of them, and instead you say you love them. Do you have to buy a lot more content?" Marni: "Yeah, I'm not going to say we have to buy a lot more content, but why do I love Huff Post? It's because consumers love Huff Post. So we think that's really critical. You've got to connect with the consumer, you've got to make sure that they want to come back and Huff Post does that. That's why we love it!" 2 nd Moderator: "Ok, Tim, Tim, are you going to be able to will you buy Fan Duel, and Marni, will you be able to get all of the international NFL games that are up for grabs?" Tim: "Jim, I think that the first thing we're buying is into the operational vision that we have and that's what teams are really going to be focused on overall. I would say this though, I think, from a full stack perspective, when you look all the way from the video stack to the content stack to the advertising stack, the combination of Verizon and AOL will put a new seat at the biggest table of the world which is the internet revolution. I think from our standpoint, the acquisitions we've made in the past and the acquisitions Verizon has made over time put together a one plus one is going to equal a lot more than two, and I hope it goes all the way up to ten. My guess is we'll be aggressive with investments and be aggressive in terms with what we're doing, but a lot of those investments will be operational investments as well. We have a very adept team at building very big platforms at very lost cost overall, and I think Verizon is a really powerful, you know, partner for us and our job is to make Verizon successful, so I think you're going to see us really work closely with Marni and her team to make sure Verizon gets a really big benefit out of this deal overall, and the whole team in here knows that. I've messaged that; we're set on doing it, and our teams over in Cannes, France, are right now at the advertising festival and we're probably the hottest company there right now. And we'll be even hotter when we get there next year." 3 rd Moderator: "Marni, it's been written that Huff Post leans left but Verizon leans right. Is that true?" Marni: "I, I don't really care which way we lean. I think it's all about making sure that Huff Post has editorial independence, and we've committed that and we have said that on a number of occasions. We think that's the cornerstone of what has to happen, regardless of which way people lean." Tim: "And also, I think that's an easy argument. The Huff Post, when we bought it, was 20 million UVs unique visitors and now it's 220 million, multi-platform, global unique visitors, multi-platform unique visitors, and it's one of the largest businesses, content businesses in the world and we're the fastest on the innovation front. So I think the fact of the matter is if you went out in the world and tried to find a property with 200 million multi-platform UVs that people read every single day, there's only a handful of those in the world and I think Verizon's going to turbo-charge that. Tech Crunch, Movie Phone and MapQuest and all the other properties we have." Moderator: "Tim, you mentioned them, how are Q2 ad sales going in digital right now?" Tim: "We've had a very, very strong first half of the year overall, I think, led by, not just this deal, but other deals that we've been doing with other partners overall, and I think we if you look at where ad dollars are moving, they're moving very quickly to the following places number one is the mechanization with programmatic of Madison Avenue; two is they're moving to video; three is they're moving to mobile. We launched our AOL One platform at the beginning of Q2; we've seen a lot of traction on that and Verizon was actually a partner on the launch of that overall. So I think if you're in digital, mobile and video and you're in programmatic, those are the best places to be. That's why we chose to go there 4 years ago, and you're seeing the results today in this deal and what the future holds for these 2 companies.