May 3, 2021- 11:50 p.m.
Verizon Communications Incorporated is set to sell its media group, which includes Yahoo and AOL, to private equity firm Apollo Global Management, CNBC reported Monday.Both Verizon and Apollo announced that Verizon will sell its media group to Apollo for $5 billion, according to CNBC.
Media brands under the Verizon Media banner, such as Yahoo Finance, Engadget, and TechCrunch will be sold to Apollo at lower estimates than they were acquired several years ago.
In 2015, Verizon purchased AOL for $4.4 billion, and two years later, Yahoo for $4.5 billion, CNBC reported.
Verizon wrote $4.6 billion off the value of the businesses in 2018, and will now receive $4.5 billion in cash from Apollo global, including a 10% stake in the company, Yahoo Finance.
“We are excited to be joining forces with Apollo. The past two-quarters of double-digit growth have demonstrated our ability to transform our media ecosystem.
With Apollo’s sector expertise and strategic insight, Yahoo will be well-positioned to capitalize on market opportunities, media and transaction experience and continue to grow our full-stack digital advertising platform,” Guru Gowrappan, CEO of Verizon Media, said in a press release.
“This transition will help to accelerate our growth for the long-term success of the company.”
