Verizon to Buy AOL

Verizon (VZ) announced that it’s buying AOL (AOL) for $4.4 billion in cash.

Verizon Communications on Tuesday said it would acquire AOL for $4.4 billion in an all-cash deal that will see today’s king of mobile phones acquire the one-time king of media.

Verizon is the largest mobile phone operator in the country, and has growing lines of business offering high-speed Internet, as well as business and streaming video services.

AOL, which acquired Time Warner for $165 billion in what is broadly regarded as a debacle and the high-water mark of the dot-com bubble, is now a shadow of its former self, managing a small collection of media and technology properties.

Verizon is billing the deal as a way for the company to expand its video offerings. Already a leader in distributing mobile video through its robust national mobile phone network, Verizon is making a push to become a leader in so-called over-the-top video, shorthand for television content distributed through the Internet.

Verizon is offering $50 per share. That’s a 17% premium over yesterday’s close.

Posted by on May 12th, 2015 at 8:23 am


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