Verizon Communications approached AOL about a potential acquisition or joint venture to expand its mobile-video offerings, Bloomberg reported on Monday, citing people with knowledge of the matter.
AOL shares surged on the news in premarket trading Tuesday. (Get the latest quote here.)
Verizon has not made a formal proposal to AOL, and no agreement is imminent, Bloomberg said, citing people who asked not to be named.
A joint venture, if formed, would focus on advertising technology, Bloomberg cited one of the people as saying.
Verizon 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.
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Last year, activist investor Starboard Value urged Yahoo to consider a strategic combination with AOL to save more than $1 billion in costs.
Verizon and AOL declined to comment on the report.
—CNBC contributed to this report.