Inc. and AOL Inc on the left of the Yahoo! website page. Is displayed on the computer monitor.
Chris Ratcliff | Bloomberg | Getty Images
Verizon announced on Monday that it will sell its media group to private-equity fund Apollo Global Management for $ 5 billion. The sale will allow Verizon to offload properties from AOL and Yahoo’s former internet empire. Verizon will hold a 10% stake in the company and will rename it to Yahoo only.
The sale reveals that former Yahoo and AOL-affiliated online media brands such as TechCrunch, Yahoo Finance, and Engadget will go to Apollo with a much lower rating than they ordered just a few years ago. Verizon bought AOL for $ 4.4 billion in 2015 and Yahoo for $ 4.5 billion in 2017.
Verizon will earn $ 4.25 billion in cash on sale, along with a 10% stake in the company. Verizon and Apollo said they expect the deal to close in the second half of 2021.
Recently, there is increasing evidence that Verizon wants to sell its media assets and instead focus on wireless networks and other Internet provider businesses. Last year, Verizon sold the HuffPost to BuzzFeed. We also recently sold or shut down other media properties such as Tumblr and Yahoo Answers.
Prior to that, Verizon’s original vision was to turn Yahoo and AOL’s assets into huge online media that could take over Google and Facebook’s dominance in online advertising. Under former AOL CEO Tim Armstrong, the Yahoo and AOL brands have been integrated into a new online media division within Verizon called Oath.
However, the Oath project was largely unable to gain momentum, and Armstrong left the company in 2018. Oath was rebranded as Verizon Media Group in November 2018 and was run by Guru Gowrappan. Gowrappan will continue to lead Yahoo under Apollo.
With the sale of Yahoo and AOL, Verizon has shown that it is no longer interested in the media, unlike its rivals. AT & T is trying to grow WarnerMedia into a Netflix and Disney streaming competitor, despite suffering heavy debt from media acquisitions. Another internet provider, Comcast, continues its media business as well as NBCUniversal.
Disclosure: Comcast is the parent company of NBC Universal, which owns CNBC.
Verizon sells Yahoo and AOL businesses to Apollo for $ 5 billion
Source link Verizon sells Yahoo and AOL businesses to Apollo for $ 5 billion