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Verizon sells Internet pioneers Yahoo and AOL for $ 5 billion

AOL and Yahoo will once again be sold to private equity firms.

Wireless company Verizon will sell Verizon Media, a former pioneering technology platform, to Apollo Global Management for a $ 5 billion transaction.

Verizon announced on Monday that it will hold a 10% stake in a new company called Yahoo.

At the end of the last century, Yahoo was the face of the Internet, ahead of giant technology platforms such as Google and Facebook. And AOL is a portal that brought almost everyone who logged on in the early days of the Internet.

Verizon has spent about $ 9 billion on AOL and Yahoo purchases over the two years from 2015, hoping to grow its digital media business, which competes with Google and Facebook. That didn’t work as Google, Facebook, and increasingly Amazon dominate the US digital advertising market — those brands were still declining. The year after the acquisition of Yahoo, Verizon wrote down the value of an integrated business called “Oath” at the value of about $ 4.5 billion spent on Yahoo.

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Verizon has refocused on wireless and has reduced media assets by spending billions of dollars on licensing the radio waves needed for the next generation of faster mobile services called 5G. We sold our blog site Tumblr in 2019 and HuffPost to BuzzFeed at the end of last year. In recent years, the digital media sector has been integrated as businesses pursue profitability.

Properties for sale by Verizon include Yahoo Finance, Yahoo Mail, tech blogs Engadget and TechCrunch. Competing with tech giants for advertising costs has been difficult, leading to cost savings and severances, but Verizon Media’s most recent quarterly revenues increased 10% year-on-year to $ 1.9 billion.

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Financial companies have played an increasingly important role in traditional media in recent years, acquiring newspaper chains and reducing costs.

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Verizon sells Internet pioneers Yahoo and AOL for $ 5 billion

Source link Verizon sells Internet pioneers Yahoo and AOL for $ 5 billion

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