Verizon is buying AOL for $4.4 billion, the companies announced Tuesday. Verizon says that by acquiring AOL they can expand their online video offerings, The New York Times reported.

Verizon's acquisition of AOL will help it do more than just host online videos though; AOL also owns online advertising content and websites, such as The Huffington Post.

AOL still provides slow dial-up Internet connections to people who live in remote areas and are unable to access broadband connections, as well as those who never canceled their subscriptions.

"Verizon's vision is to provide customers with a premium digital experience based on a global multi-screen network platform," Lowell C. McAdam, Verizon's chief executive, said in a statement. "This acquisition supports our strategy to provide a cross-screen connection for consumers, creators and advertisers to deliver that premium customer experience." 

Verizon will pay $50 per share to acquire AOL. That is 17 percent higher than AOL's closing price Monday. To fund the deal, Verizon will use cash and short-term debt. 

Verizon said it plans to launch a video service that is focused on mobile devices this summer, and with AOL, it would be easier to do so, the Wall Street Journal reports. 

"The world is going mobile, and it is going there really quickly," said Tim Armstrong, AOL's chief executive.

Armstrong will stay with AOL after the acquisition. He said by staying with the company he will help Verizon's growing content business.

Verizon is the leading mobile phone provider. The company has 1.5 billion devices connected and a large network to distribute mobile content. Verizon has been trying to increase its entertainment offerings, but until now, it has not made any big acquisitions to add to its content.

AOL and Verizon teamed up in the past and spoke about a possible deal. Talks heated up in the last few months when the companies started talking to legal and financial advisers and pushed for a deal.

"In the last couple months, it got more turned toward doing the deal that we did today," Armstrong said. "It's been a natural progression." 

The deal is not expected to close until later this summer.