Verizon acquires AOL, and aims to become one of the biggest providers of content and video for the web and mobile phones.
The acquisition news took AOL shares up 19 percent to $50.62, while shares of Verizon declined 0.7 percent at $49.46. Verizon pays $50 per share for a total value of about $4.4 billion. The merger will add AOL and its properties like the Huffington post, Techcrunch and Engadget websites to become Verizon's.
The deal also includes AOL's $300 million debt.
"Verizon's vision is to provide customers with a premium digital experience based on a global multiscreen network platform," said Chairman and CEO of Verizon, Lowell McAdam. "This acquisition supports our strategy to provide a cross-screen connection for consumers, creators and advertisers to deliver that premium customer experience."