AOL shares are up more than 17% in pre-market trading following news that the company is being acquired by Verizon.
On Tuesday morning, Verizon announced it will acquire AOL for $US4.4 billion, or $US50 per share.
That’s a 17% premium over AOL’s Monday closing price of $US42.59.
Verizon shares, in contrast, were lower after the deal, falling as much as 1.5% in pre-market trade.
AOL shares have rallied nearly 13% over the past 12 months, and they’re down 7% year-to-date.