The sale will see online media brands under the former Yahoo and AOL umbrellas like TechCrunch, Yahoo Finance and Engadget go to Apollo.
Verizon will sell its media group to private equity firm Apollo Global Management for $5 billion, the two companies announced Monday. The sale allows Verizon to offload properties from the former internet empires of AOL and Yahoo. Verizon will keep a 10 percent stake in the company and it will be rebranded to just “Yahoo.”
The sale will see online media brands under the former Yahoo and AOL umbrellas like TechCrunch, Yahoo Finance and Engadget go to Apollo. Verizon bought AOL in 2015 for $4.4 billion in 2015, and it bought Yahoo for $4.5 billion in 2017.
There has been increasing evidence recently that Verizon wanted to sell off its media properties and instead focus on its wireless networks and other internet provider businesses. Last year, Verizon sold HuffPost to BuzzFeed. It also recently sold off or shut down other media properties like Tumblr and Yahoo Answers.
Before that, Verizon’s original vision was to turn Yahoo and AOL properties into online media behemoths that could take on Google and Facebook’s dominance in online advertising. Under former AOL CEO Tim Armstrong, the Yahoo and AOL brands were converged into a new online media division within Verizon called Oath.
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By Steve Kovach, CNBC
Verizon will promote its media group to personal fairness agency Apollo World Administration for $5 billion, the 2 corporations introduced Monday. The sale permits Verizon to dump properties from the previous web empires of AOL and Yahoo. Verizon will preserve a 10 p.c stake within the firm and it is going to be rebranded to only “Yahoo.”
The sale will see on-line media manufacturers beneath the previous Yahoo and AOL umbrellas like TechCrunch, Yahoo Finance and Engadget go to Apollo. Verizon purchased AOL in 2015 for $4.Four billion in 2015, and it purchased Yahoo for $4.5 billion in 2017.
There was growing proof just lately that Verizon needed to dump its media properties and as a substitute concentrate on its wi-fi networks and different web supplier companies. Final 12 months, Verizon offered HuffPost to BuzzFeed. It additionally just lately offered off or shut down different media properties like Tumblr and Yahoo Solutions.
Earlier than that, Verizon’s authentic imaginative and prescient was to show Yahoo and AOL properties into on-line media behemoths that might tackle Google and Fb’s dominance in internet marketing. Beneath former AOL CEO Tim Armstrong, the Yahoo and AOL manufacturers have been converged into a brand new on-line media division inside Verizon referred to as Oath.
However the Oath mission largely failed to achieve momentum, and Armstrong left the corporate in 2018. Oath rebranded once more as Verizon Media Group in November 2018 and was run by Guru Gowrappan. Gowrappan will proceed to guide Yahoo beneath Apollo.
With the sale of Yahoo and AOL, Verizon signaled it’s not considering media, in contrast to its rivals. AT&T continues to be attempting to develop WarnerMedia right into a streaming competitor to Netflix and Disney, even because it struggles with a great deal of debt from its media acquisitions. Comcast, one other web supplier, continues to be within the media enterprise as effectively with NBCUniversal.