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The offer of $50 per share represents a premium
of 17.4 percent to AOL's Monday close of $42.59.
Shares of AOL were trading at $50.05 before the bell.
The deal, which includes about $300 million of AOL debt, will
take the form of a tender offer followed by a merger, with AOL
becoming a wholly owned subsidiary of Verizon upon completion.
Verizon said it expects to fund the transaction from cash on
hand and debt.
Activist-investor Starboard Value LP had urged Yahoo Inc to
consider a merger with AOL, whose businesses include the
Huffington Post news website and the TechCrunch blog.
(Reporting by Devika Krishna Kumar Abhirup Roy in Bengaluru;
Editing by Savio D'Souza and Saumyadeb Chakrabarty)
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