Verizon is buying AOL for a cool $US4.4 billion in cash.
According to a WSJ report, the buy is being "aimed at advancing the telecom giant's growth ambitions in mobile video and advertising".
The purchase, according to the newspaper, values AOL at $US50 a share.
Before the U.S. markets opened, the news saw AOL share rise by 18 per cent and Verizon's fall by 1.6 per cent.
The deal will provide "access to advanced technology AOL has developed for selling ads and delivering high-quality Web video," writes the newspaper. [Wall Street Journal]
Image by Jason Persse, CC