Verizon has reached a deal to acquire AOL for $4.4 billion, the company announced Tuesday. The transaction, which is expected to be completed this summer, is worth $50 a share \u2014\u00a0greater\u00a0than AOL\u2019s closing price of $42.59 a share on Monday.<\/p>\n
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\u201cVerizon\u2019s vision is to provide customers with a premium digital experience based on a global multiscreen network platform,\u201d said CEO and chairman Lowell McAdam. \u201cThis acquisition supports our strategy to provide a cross-screen connection for consumers, creators and advertisers to deliver that premium customer experience.\u201d<\/p>\n
McAdam describes AOL as a \u201cdigital trailblazer\u201d that can drive its LTE\u00a0wireless video and OTT (over-the-top video) strategy. The move will also support Verizon\u2019s IoT (Internet of Things) platforms for consumers and businesses, the company said.<\/p>\n
In addition to AOL, the deal includes a number of significant publishing brands, including\u00a0The Huffington Post \u2014<\/em>\u00a0which AOL acquired for $315 million just over four years ago \u2014 plus\u00a0Engadget,\u00a0<\/em>TechCrunch,\u00a0<\/em>and\u00a0MAKERS.<\/em><\/p>\n Tim Armstrong<\/span>, AOL chairman and CEO, will continue to lead AOL operations after it becomes a Verizon subsidiary. Verizon is to fund the transaction using cash on hand and commercial paper, and the carrier expects to return to \u201cpre-Vodafone transaction credit ratings in the 2018-2019 timeframe.\u201d<\/p>\n The transaction Verizon refers to is its $130 billion buyout of Vodafone\u2019s stake in Verizon Wireless, which was completed last February.<\/p>\n Interestingly, Tuesday\u2019s announcement comes just four months after McAdam rubbished rumors of an AOL acquisition and said, \u201cWe will be more of a partner withmedia\u00a0<\/span><\/span>companies rather than doing an acquisition.\u201d<\/p>\n \u201cAOL along with lots of other media companies are potential partners for us,\u201d McAdam added. \u201cBut to say we are having significant acquisition discussions is really inaccurate.\u201d<\/p>\n