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Verizon buying AOL for $4.4 billion

Verizon is buying AOL for about $4.4 billion, advancing the telecom's push in both mobile and advertising fields.
Verizon is buying AOL for about $4.4 billion, advancing the telecom's push in both mobile and advertising fields. AP Photo/Paul Sakuma, File

NEW YORK — Verizon is buying AOL for about $4.4 billion, advancing the telecom’s push in both mobile and advertising fields.

AOL owns The Huffington Post, TechCrunch, Engadget, MAKERS and AOL.com.

A Verizon spokesman says the AOL business will continue to be under the leadership of its chairman and chief executive, Tim Armstrong, and no major changes to the operations are anticipated.

The deal will include AOL Canada and the Huffington Post‘s Canadian operation.

The acquisition gives Verizon an entry into the increasingly competitive online video space.

Verizon chairman Lowell McAdam says the company’s vision is to provide its customers with a premium digital experience over different types of devide.

“AOL’s advertising model aligns with this approach, and the advertising platform provides a key tool for us to develop future revenue streams,” McAdam said in a statement

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Verizon Communications Inc. said Tuesday that it will pay US$50 per share for the company in cash, a 15 per cent premium to AOL’s closing price on Monday.