New York

VERIZON Communications Inc has agreed to buy AOL Inc in a deal valued at US$4.4 billion, getting access to automated advertising technology and digital media clips that will help make more money from mobile video.

Verizon, the largest US wireless provider, will pay US$50 a share, a 17 per cent premium over AOL's stock price on Monday. AOL CEO Tim Armstrong will continue to lead AOL's operations after the deal is completed, the companies said on Tuesday in a statement.