Mobile giant Verizon has announced that it will acquire the former media kingpin AOL in an all-cash deal worth $4.4 billion.
Although AOL is virtually an afterthought these days, Verizon has said that it will use the deal to help push its online video content, which it has made efforts to become a leader in.
Notably, the deal also makes Verizon the owner of The Huffington Post, Techcrunch, Engadget and others.
“The visions of Verizon and AOL are shared,” AOL’s CEO Tim Armstrong said in a statement. “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.”
As part of the deal, Verizon will pay $50 per share for AOL. The deal is expected to be closed this summer, once regulatory approval is reached.
Source: New York Times