Verizon Communications has agreed to buy former Internet darling AOL for $4.4 billion “with the strategy of building the biggest media platform in the world,” said AOL CEO Tim Armstrong.
The acquisition is the culmination of partnership talks that began in January. The deal will make AOL, which Armstrong will continue to lead, a division of Verizon. AOL will keep oversight of its own businesses and “additional assets from Verizon that are targeted at the mobile and video media space,” Armstrong told staff in an email
The deal values AOL at $50 a share, which is 23% more than the company’s average stock price over the past three months. AOL’s stock jumped 18% in premarket trading after the news, while Verizon stock fell 1.3%, indicating that investors are more excited that AOL is being bought than that Verizon is doing the buying …
Via: Mashable: Business