Verizon agrees to buy AOL for $4.4 billion

Verizon is buying AOL for $4.4 billion
(Image credit: Neilson Barnard/Getty Images/Verizon)

On Monday, Verizon Communications announced that it is buying AOL Inc. for $50 a share, or $4.4 billion, a 23 percent premium over AOL's recent average share price. Tim Armstrong, AOL chairman and chief executive, will keep his job after the deal is finalized this summer, Verizon said. Armstrong and Verizon both said in statements that the goal of the merger is to add AOL's ad and mobile video-streaming technology to Verizon's extensive wireless network.

This isn't AOL's first big merger: In 2000, AOL nominally purchased Time Warner in a $164 billion deal that soured with the dot-com bust of 2001 and finally ended in 2009. The Verizon merger needs regulatory approval.

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