Tuesday 30 May 2017

Verizon to buy AOL for $4.4bn

Ted Turner, Time Warner vice chairman/AOL Time Warner vice chairman and founder of CNN and his new girlfriend Frederique D'Arragon, June, 2000.
Ted Turner, Time Warner vice chairman/AOL Time Warner vice chairman and founder of CNN and his new girlfriend Frederique D'Arragon, June, 2000.

Verizon Communications Inc said it would buy AOL in a deal valued at about $4.4bn.

The offer of $50 per share is a premium of 17.4pc to AOL's Monday close of $42.59.

Shares of AOL were trading at $50.05 before the bell.

The deal, which includes about $300 million of AOL debt, will take the form of a tender offer followed by a merger, with AOL becoming a wholly owned subsidiary of Verizon upon completion.

Verizon said it expects to fund the transaction from cash on hand and debt.

Activist-investor Starboard Value LP had urged Yahoo Inc to consider a merger with AOL, whose businesses include the Huffington Post news website and the TechCrunch blog.

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