Verizon to buy AOL for $4.4 billion

Verizon to shop for AOL for $4.4 billion, medium big Verizon (VZ) declared Tuesday it'll be shopping for AOL (AOL) for $50 per share, or regarding $4.4 billion.

AOL's stock was up quite seventeen % when the announcement. Verizon's stock was down regarding a pair of %.

The dealing are going to be completed this summer and can take the shape of a young supply followed by a merger, when that AOL can become an entirely owned subsidiary of Verizon, the announcement aforesaid.

"Verizon's acquisition additional drives its LTE wireless video and OTT (over-the-top video) strategy," Verizon aforesaid in an exceedingly statement.

Tim Armstrong, AOL's chairman and chief operating officer, can stay at his position once the deal is finalized.

"Verizon may be a leader in mobile and OTT connected platforms, and therefore the combination of Verizon and AOL creates a singular and scaled mobile and OTT media platform for creators, shoppers and advertisers," Armstrong aforesaid within the announcement.

He additionally aforesaid execution this deal was ensuing step for the corporate to continue growing.

"We turned the corporate around. we tend to outperformed the S&P five hundred for the last 5 years, and after you explore wherever we tend to ar these days and wherever we're going, we've created AOL as huge because it will presumably be in today's landscape, however if you foresee 5 years, {you're going|you ar going} to be in an exceedingly house wherever there are getting to be large, global-scale networks, and there is no higher partner for U.S. to travel forward with than Verizon," Armstrong told CNBC's "Squawk Box.
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