Telecom giant Verizon acquires AOL for $4.4 bn

Telecom giant Verizon Communications Inc. said Tuesday it was acquiring digital content provider AOL Inc. for $4.4 billion.

Verizon is paying $50 per share for AOL, a premium of 17.4 percent over the stock’s closing price of $42.59 on Monday.

“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 crossscreen connection for consumers, creators and advertisers to deliver that premium customer experience,” Verizon chairman and CEO Lowell McAdam said.

AOL is a leading provider of digital content and advertising, and one of the pioneers of the Internet age.

AOL chairman and CEO Tim Armstrong is staying on after the deal closes and will run the unit, Verizon said.

“Verizon is a leader in mobile and OTT connected platforms, and the combination of Verizon and AOL creates a unique and scaled mobile and OTT media platform for creators, consumers and advertisers. The visions of Verizon and AOL are shared; the companies have existing successful partnerships, and we are excited to work with the team at Verizon to create the next generation of media through mobile and video,” Armstrong said.

The acquisition will be financed with cash on hand and the issuance of debt, Verizon said.