Verizon To Buy AOL For $4.4 billion

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Verizon Communications Inc (VZ.N) said it would buy AOL lnc (AOL.N) in a $4.4 billion deal that gives the biggest U.S. wireless carrier access to AOL’s successful digital advertising service and content including the Huffington Post news website.

Communications Inc (VZ.N) said it would buy AOL Inc (AOL.N) in a $4.4 billion deal that gives the biggest U.S. wireless carrier access to AOL’s successful digital advertising service and content including the Huffington Post news website.

 The offer of $50 per share represents a premium of 17.4 percent to AOL’s Monday close of $42.59.

 AOL shares traded as high as $50.70 before the opening bell on Tuesday. Verizon shares were down about 1 percent at $49.32.

 The deal, which includes about $300 million of AOL debt, will take the form of a tender offer followed by a merger, with AOL becoming a wholly owned subsidiary of Verizon.

 Verizon said it expects to fund the transaction from cash on hand and debt.

 Tim Armstrong, who has spearheaded AOL’s transformation into one of the most successful advertising technology companies, will continue to lead the company after the sale.

“When you look at where we are today and where we are going, we have made AOL as big as it can possibly be in today’s landscape,” Armstrong told CNBC.

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