Verizon sells Yahoo, AOL and other properties for $5 billion

by Kelvin
Verizon sells Yahoo, AOL and other properties for $5 billion

Verizon sold AOL and Yahoo properties to Apollo Global Management in a deal estimated at $5 billion. Surprisingly, the value is about half of the nearly $9 billion the company originally invested in the pair.

According to the information, Verizon will retain a 10% stake in the company that will once again be known as just Yahoo. After the end of negotiations in the second half of 2021, Guru Gowrappan will assume the position of CEO.

  

The sale of Verizon Media also includes the advertising area and important online vehicles such as TechCrunch and gadget. Thus, the company ends its problematic experience in the digital media and advertising sector.

Apollo Global Management is currently a private equity firm that owns the Venetian resort in Las Vegas. In addition, she owns Michaels craft retailer in the United States.

“We are excited to help unlock the enormous potential of Yahoo and its unrivaled collection of brands,” said Apollo Global Partner Reed Rayman.

In a statement, the executive expressed respect and admiration for the performance of Verizon in recent years. As well, the new owner is looking forward to working with CEO Gowrappan and accelerating the growth of the Yahoo brand in its next chapter.

Purchase and sales history

Originally, Verizon paid $4.4 billion for AOL in 2015 and another $4.5 billion for Yahoo two years later. Under the name Verizon Media, the company admitted the poor performance and saw brands reach half their acquisition value in 2018.

Seeking to leave the media market, Verizon began selling properties in 2019. Acquired by Yahoo for $1.1 billion in 2013, the blog platform Tumblr is estimated to have been purchased for less than $3 million .