Verizon looks like it is finally free of its failed experiment with media production and advertising by selling off AOL and Yahoo…
Verizon has agreed to sell its AOL and Yahoo properties to Apollo Global Management for approximately $5 billion. If the deal goes through as-is, this would represent nearly half the $9 the telecom paid for the pair. Verizon will still maintain a 10% stake in the entity known as Yahoo. The package also contains Verizon’s ad tech business, meaning it will end the company’s troubled foray into media production and advertising.
Verizon Sells AOL and Yahoo for $5 Billion, after Paying $9 Billion for Both Companies
The buyer, Apollo Global Management is a private equity firm that currently owns the Las Vega Venetian resort and crafts retailer Michaels. Verizon originally paid $4.4 billion for AOL back in 2015 and another $4.5 billion for Yahoo two years later. Thereafter, the media divisions were consolidated under the name Oath but it was later rebranded Verizon Media Group in 2018 after the telecom wrote off about half its value.
TextApollo partner Reed Rayman says, “We are thrilled to help unlock the tremendous potential of Yahoo and its unparalleled collection of brands. We have enormous respect and admiration for the great work and progress that the entire organization has made over the last several years, and we look forward to working with Guru, his talented team, and our partners at Verizon to accelerate Yahoo’s growth in its next chapter.”