Verizon Consents To Sell Yahoo, AOL to Apollo for $5 Billion
Apollo Global Management Inc. APO 0.07% accepted pay about $5 billion to obtain Yahoo and AOL from Verizon Communications Inc. VZ 0.62% as the cordless company exits its unfortunate foray into the media organization.
The private-equity firm is paying $4.25 billion in cash for a majority stake in the media properties and providing Verizon with interests in business amounting to $750 million. In addition, Verizon will keep a 10% stake in a new company, called Yahoo, that will be formed to operate business.
The Wall Street Journal previously reported Apollo’s interest in Verizon Media’s company, which mostly struggled to grow against Alphabet Inc.‘s Google and Facebook Inc. Verizon Media had about $7 billion in profits last year.
Other suitors formerly revealed interest in buying off certain pieces of the media unit, which consists of sites such as TechCrunch and Yahoo Finance, but weren’t happy to make a deal for the entire portfolio, according to an individual knowledgeable about the matter.
Verizon collected some of the web’s best-known brand names starting in 2015 with its purchase of AOL, followed by its 2017 acquisition of Yahoo. AOL’s then-chief, Tim Armstrong, called the brand-new service an incredibly channel for marketers to reach numerous millions of users.
Executives framed the newly named Oath organization as an alternative way for marketers to reach potential clients beyond a digital ecosystem dominated by Google, Facebook and Amazon.com Inc. But the stitched-together media group could not keep up with its innovation competitors’ explosive sales development, and Verizon in 2018 composed down about half of the value of the media brands it had gotten.