Telecommunications company Verizon will sell its Verizon Media division, which includes AOL and Yahoo, to Apollo Global Management.
With this agreement, Verizon will keep 10% of Verizon Media. Apollo Global Management will acquire the rest of Verizon Media for $5 billion. Verizon Media CEO Guru Gowrappan will keep his position at the helm. Meanwhile, Verizon Media will also be renamed Yahoo.
The sale to the private equity firm also includes the advertising tech business of Verizon.
As Verizon gives up on its media and advertising business, it will continue to focus on its primary business of telecommunications.
Both Yahoo and AOL were pioneers in the early days of the Internet.
Verizon acquired AOL back in 2015 for $4.4 billion to enter the mobile advertising market. The company later acquired Yahoo in 2017 for $4.48 billion. Verizon combined AOL and Yahoo to rename it Oath. However, the power of Facebook and Google were too much for Verizon in the online advertising market.
“Verizon Media has done an incredible job turning the business around over the past two and a half years and the growth potential is enormous,” said Hans Vestberg, CEO, Verizon. “The next iteration requires full investment and the right resources. During the strategic review process, Apollo delivered the strongest vision and strategy for the next phase of Verizon Media. I have full confidence that Yahoo will take off in its new home.”
Apollo Global Management has previously acquired Cox Media Group, Apollo Education (parent company of University of Phoenix), Diamond Resorts Int’l, Claire’s, CEC Entertainment (parent company of Chuck E. Cheese’s Restaurants), and many others.
[Source]: Verizon: Verizon Media to be acquired by Apollo Funds.
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