AOL's Stock Soars After Agreeing To Be Acquired By Verizon

Shares of AOL Inc. shot up 19% in premarket trade Tuesday, after the Internet content company agreed to be acquired by Verizon Communications Inc. in a deal valued at $4.4 billion. Under terms of the deal, which will take the form of a tender offer that is followed by a merger, Verizon will pay $50 for each AOL share, which represents a 17% premium to Monday's closing price. The deal is expected to close in the summer. Verizon said it expects to fund the purchase with cash on hand and commercial paper. Verizon's stock fell 1.6% in premarket trade. AOL's stock has lost 7.8% year to date through Monday, while Verizon shares have climbed 6.5% and the S&P 500 has gained 2.3%.