Verizon to sell off media brands Yahoo, AOL for $5bn
By The Washington Post
By Hannah Denham
Verizon will sell its media arm, spinning off digital pioneers AOL and Yahoo, to a private equity firm for $5 billion.
Verizon announced the deal with New York-based Apollo Global Management in a Monday news release. It will keep a 10% stake in Verizon Media Group, which will be renamed Yahoo after the deal closes in the second half of the year.
Guru Gowrappan, who will stay on as chief executive of the media company, says the transaction allows Verizon to focus on long-term growth.
Verizon offloads Yahoo and AOL in $5 billion deal
By
Jordan Valinsky, CNN Business
Published May 4, 2021 9:41:36 AM
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(CNN) Verizon is exiting the media business, announcing Monday that it s selling the unit for $5 billion to private equity firm Apollo Global Management.
The sale includes AOL and Yahoo, which Verizon bought for a combined $9 billion in recent years. Verizon will retain a 10% stake in the spin off and the Verizon Media Group name will be changed to just Yahoo.
Verizon once had great plans to become a dominant player in the online media and ad business. The telephone company bought AOL for $4.4 billion in 2015 and further bolstered its portfolio with its Yahoo purchase at a similar price in 2017. The unit was briefly named Oath, but Verizon admitted that its plans to take on Amazon, Google and Facebook was essentially a waste when it took a $4.6 billion writedown on Oath in 2018.
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Verizon Says Farewell to AOL and Yahoo By Luke BellosMay 04, 2021
Verizon announced the company would be selling its majority stake in both AOL and Yahoo, officially ending the company’s presence in the media space.
Verizon purchased both companies in a relatively short period of time, with the intention of becoming a major player against other tech companies like Google and Facebook, both of which have diversified their brands by expanding into media. AOL and Yahoo were purchased for roughly 4 billion each, but Verizon executives admit the purchase turned out to be less successful than anticipated. Both companies will now be owned and operated by private equity firm Apollo Global Management after signing an agreement for $5 billion.