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 Media to be acquired by Apollo Funds https://t.co/hZ78oVnCUT
— Verizon News (@VerizonNews) May 3, 2021
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 reported. (RELATED: Former Facebook Official Calls For Verizon, AT&T, Others To Deplatform OANN And Newsmax)
“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.”
CNBC reported that Verizon wants to focus more on its wireless networks and other internet provider ventures. In 2020 Verizon sold the Huffington Post to Buzzfeed, and recently either sold or terminated other services, such as Tumblr and Yahoo Answers.
The transaction is expected to close in the second half of 2021, according to CNBC.