AOL is getting involved in another major merger, surely hoping it ends better than last time. This time it's Verizon, not Time Warner, with the telecom giant announcing plans to buy AOL for $4.4 billion, reports CNBC. For Verizon, it's all about the push for growth in mobile video and ads, reports the Wall Street Journal. AOL, one of the early players in the world of dial-up, has developed a niche in that area in recent years under CEO Tim Armstrong, who is keeping his job.
The deal will “create what I think is the largest mobile and video business in the United States," he tells the Journal. Assuming the all-cash deal clears all necessary regulatory hurdles, AOL will become a subsidiary of Verizon by the end of summer. The market seems to think it makes sense for AOL: Its stock was up 17% on the news, with Verizon's down 2%, notes CNBC. Verizon plans to pay $50 a share.