What Verizon could do with AOLIf the deal goes through, AOL will be under the Verizon umbrella. What will that mean for you?
What will a Verizon controlled AOL mean for you? We might just find out. I'm Iyaz Akhtar in for Bridget Carey. This is your CNet update. [MUSIC] Verizon announced its intention to buy AOL $50 per share in an all-cash deal that totals up to $4.4 billion. If the deal gets regulatory approval, AOL would become a wholly owned subsidiary of Verizon, with current AOL chairman and C.E.O. Tim Armstrong heading up the AOL division. Now what does Verizon want with AOL? Verizon officially says the move is a significant step in building digital and video platforms to drive future growth. And the acquisition further drive its LTE wireless video and over-the-top video strategy. Add to that Verizon specifically mentions that AOL is a leader in the digital content and advertising platforms space. Okay, so what is this deal all about and what does it mean for you? This deal seems to suggest that Verizon is buying AOL for Verizon's upcoming TV over the internet service that it bought from Intel back in January 2014. AOL's advertising expertise could mean that Verizon would make more money on advertising for that service and not be as reliant on subscription fees. That could allow Verizon to have a more profitable over the top service and maybe even pass along the savings to the consumer. Emphasis on the maybe. That's just reading the tea leaves so far. On top of that there's also murmurs from Re/code that say AOL's content arm, from properties like Huffington Post and TechCrunch Could be spun out. That would suggest you won't be seeing AOL content with Verizon branding everywhere. We'll see how all of this turns out. In other news, it appears that streaming music may not be the death of record labels. Warner Music Group announced that it made more money streaming music, than it did from selling downloads in the last quarter. This shift is the first time any of the major music labels has reported that streaming revenue exceeded download revenue. The music industry has been at odds with streaming services as to what is a proper business model. Free with ad support, or subscription only? Warner Music Group CEO Stephen Cooper warned that taking away music from free services could lead to an increase in piracy. Stressing that piracy is zero revenue while any other thing, music streaming, or downloads is better than zero. Now it's time to visit Facebook land. The next web report said that Facebook is working on a new way to make buying and selling items easier between Facebook users. Facebook already allowed people to sell items in groups, but a new option being tested would allow a person to see all for sale posts or search all public groups for an item. The search would also include a drop down menu that would limit your search to particular categories like books, cameras, or event tickets. The next web set, the search function doesn't work that well yet, but this new e-commerce part of Facebook could go live in the coming weeks. That's your tech news update. An you can head on over to cnet.com for more and follow along on twitter. From our studios in New York, I'm Iyaz Akhtar. [NOISE]