Fred Imbert | @foimbert
Telecom giant Verizon announced Tuesday it will be buying AOL for $50 per share, or about $4.4 billion. (Tweet This)
AOL’s stock was up more than 17 percent after the announcement. Verizon’s stock was down slightly.
AOL co-founder Steve Case tweeted his approval.
The transaction will be completed this summer and will take the form of a tender offer followed by a merger, after which AOL will become a wholly owned subsidiary of Verizon, the announcement said.
“Verizon’s vision is to provide customers with a premium digital experience based on a global multiscreen network platform. This acquisition supports our strategy to provide a cross-screen connection for consumers, creators and advertisers to deliver that premium customer experience,” said Lowell McAdam, Verizon’s chief executive.
Tim Armstrong, AOL’s chairman and CEO, will remain at his position once the deal is finalized.
“Verizon is a leader in mobile and OTT (over-the-top video) connected platforms, and the combination of Verizon and AOL creates a unique and scaled mobile and OTT media platform for creators, consumers and advertisers,” Armstrong said in the announcement.
