Verizon Communications Inc (VZ.N) said it would buy AOL Inc (AOL.N) in a deal valued at about $4.4 billion to gain access to AOL's digital advertising service and content.

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 (YHOO.O) to consider a merger with AOL, whose businesses include the Huffington Post news website and the TechCrunch blog.