Private equity firm Apollo Global Management acquires Verizon Media Group for $ 5 billion Announced Monday.
Verizon Media, which owns the assets of AOL and Yahoo’s former Internet empires, will be renamed “Yahoo”. Verizon said it will hold a 10 percent stake in the company.
These sales include TechCrunch, Yahoo Finance, Engadget and other online news organizations. Apollo and Verizon expect sales to close in the second half of 2021.
Verizon has been minimizing its losses on its media businesses, with the deal valuing businesses at significantly lower prices than Verizon paid a few years ago. Verizon bought AOL in 2015 for $ 4.4 billion, that is It bought Yahoo in 2017 for $ 4.5 billion.
In addition to its 10 percent stake in Yahoo, Verizon will receive $ 4.25 billion in assets.
The COVID-19 epidemic hit the advertising market a year ago, sending revenue for advertising-driven online publications to a revolving level. In the announcement of the deal on Monday, Verizon Media CEO Guru Gobind Singh said the company had recently made a strong recovery from last year’s low. He said Apollo would help develop its “full-tier digital advertising platform”.
“We are a big believer in Yahoo’s growth opportunities and are driving Macro Tailwinds-driven growth in digital media, advertising technology and consumer websites,” said David Sampoor, co-chairman of Private Equity at Apollo. “Apollo has a long track record of investing in technology and media companies, and we look forward to helping Yahoo continue to thrive on that experience.”
The deal is the latest step in Verizon’s exit from the media market. Verizon sold Huff Post to BuzzFeed last year, even more recently Close sold or other assets Including Tumblr and Yahoo responses.
When it comes out of the media, Verizon is expected to focus on its core wireless networks business and other Internet provider businesses.
For the once powerful media companies AOL and Yahoo, the deal represents a failure to adapt and thrive as the consumer Internet develops. Both companies were early titans as the consumer internet evolved, but have now become the latest media activity to fall into the hands of private equity.