American communications giant Verizon has reportedly agreed to buy mass-media corporation AOL. The deal is believed to be a step towards Verizon’s ambitions to foray in mobile video and advertising.
AOL will be sold in a $4.4 billion all cash deal. The deal values AOL at $50 a share, 23% more than its three month average share price. The deal, which is still pending regulatory approval, is expected to close by August this year.
Verizon mentions this acquisition will help drive its LTE wireless video and OTT services, as well as support its plan to provide cross-screen connections for consumers, advertisers and creators in tandem with its IoT (Internet of Things) platforms, according to WSJ.