The deal will take the form of a takeover offer, followed by a merger, with AOL becoming a 100% subsidiary of Verizon once completed. On August 24, 2005, America Online agreed to pay $1.25 million to the State of New York and reformed its after-sales service procedures. Under the agreement, AOL would no longer require its after-sales service agents to meet a minimum customer loyalty quota in order to obtain a bonus.  However, the agreement concerned only the residents of New York State.  NEW YORK, May 12, 2015 /PRNewswire/ — Verizon Communications Inc. (NYSE, Nasdaq: VZ) today took another important step in building digital and video platforms to drive future growth. In January 2000, when new broadband technologies were introduced in the NYC metropolitan area and the United States, AOL and Time Warner announced merger plans, AOL founded Time Warner, Inc. The terms of the agreement provided that AOL shareholders would have to own 55% of the combined new entity. The agreement was concluded on 11 January 2001. The new company was led by executives from AOL, SBI and Time Warner. Gerald Levin, who had served as CEO of Time Warner, was CEO of the new entity. Steve Case was president, J. Michael Kelly (of AOL) was chief financial officer, Robert W.