America’s largest carrier, Verizon, has announced this week that it has agreed to buy AOL Inc. for $4.4 / €3.92 billion, in a move that will give it access to digital content and Web advertising platforms.
Verizon is willing to pay $50 / €44 per share, which constitutes a 17% premium over AOL’s stock price registered on Monday. AOL’s Chief Executive Officer Tim Armstrong will continue to be in charge of AOL’s operations after the deal is completed.
During negotiations, AOL’s shares jumped by as much as 19% to $50.70 / €45.13 in early trading, a step above Verizon’s own offering price.
A full transaction will be completed this summer and will materialize into a merger soon after. Then AOL will become a subsidiary owned by Verizon.