Verizon Agrees To Buy AOL For $4.4 Bln - Quick Facts

(RTTNews) - Verizon Communications Inc. (VZ) Tuesday announced an agreement to purchase AOL Inc. (AOL), a leader in the digital content and advertising platforms space, for $50 per share, at an estimated total value of about $4.4 billion.

Verizon's acquisition further drives its LTE wireless video and OTT strategy. The agreement will also support and connect to Verizon's IoT platforms, creating a growth platform from wireless to IoT for consumers and businesses.

The combination will create a scaled, mobile-first platform offering directly targeted at what eMarketer estimates is a nearly $600 billion global advertising industry.

AOL's key assets include its subscription business; its premium portfolio of global content brands, including The Huffington Post, TechCrunch, Engadget, MAKERS and AOL.com, as well as its millennial-focused OTT, Emmy-nominated original video content; and its programmatic advertising platforms.

Tim Armstrong, AOL chairman and CEO, will continue to lead AOL operations after closing. The deal is expected to close this summer.

Verizon expects to fund the transaction from cash on hand and commercial paper.