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Verizon sells Yahoo and AOL for $5 Billion
Posted by: Steve G.
Date: May 03, 2021 11:04AM
Verizon sells internet trailblazers Yahoo and AOL for $5B
[apnews.com]

AOL and Yahoo are being sold again, this time to a private equity firm.

Wireless company Verizon will sell Verizon Media, which consists of the once-pioneering tech platforms, to Apollo Global Management in a $5 billion deal.

Verizon said Monday that it will keep a 10% stake in the new company, which will be called Yahoo.

Yahoo at the end of the last century was the face of the internet, preceding the behemoth tech platforms to follow, such as Google and Facebook. And AOL was the portal, bringing almost everyone who logged on during the internet’s earliest days.

Verizon spent about $9 billion buying AOL and Yahoo over two years starting in 2015, hoping to jump-start a digital media business that would compete with Google and Facebook. It didn’t work — those brands were already fading even then — as Google and Facebook and, increasingly, Amazon dominate the U.S. digital ad market. The year after buying Yahoo, Verizon wrote down the value of the combined operation, called “Oath,” by roughly the value of the $4.5 billion it had spent on Yahoo.

Verizon has been shedding media assets as it refocuses on wireless, spending billions on licensing the airwaves needed for the next generation of faster mobile service, called 5G. It sold blogging site Tumblr in 2019 and HuffPost to BuzzFeed late last year. The digital media sector in recent years has been consolidating as companies seek profitability.

The properties Verizon is selling include Yahoo Finance, Yahoo Mail and the tech blogs Engadget and TechCrunch.

Despite its difficulty competing with tech giants for ad dollars, leading to cost cuts and layoffs, Verizon Media’s revenue rose 10% in the most recent quarter from the year before, to $1.9 billion. The division still has nearly 900 million monthly users, and generated $7 billion in revenue in 2020, according to Verizon and Apollo.

Apollo says they are “big believers in the growth prospects of Yahoo” and expects that overall growth in digital advertising will boost Yahoo too, said Apollo senior partner David Sambur in a prepared statement. Apollo has invested in other media and tech companies like the photo website Shutterfly and TV and radio stations formerly owned by Cox.

Financial firms have played an increasingly prominent role in traditional media as well in recent years as the newspaper industry struggles with the decline of print advertising, buying up chains and slashing costs and jobs.

Verizon will receive $4.25 billion in cash, preferred interests of $750 million and the minority stake.

The deal is expected to close in the second half of the year.
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Re: Verizon sells Yahoo and AOL for $5 Billion
Posted by: Fritz
Date: May 03, 2021 11:10AM
quite the turd Vz bought.... and sold.
but I wouldn't take that bet nuther.
can't imagine what Apollo knows that no one else does.



!#$@@$#!

If there are spelling issues, please pardon, Owen the cat is sitting on my keyboard.
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Re: Verizon sells Yahoo and AOL for $5 Billion
Posted by: MrNoBody
Date: May 03, 2021 11:18AM
... The deal is expected to close in the second half of the year.
If the Feds allow it as structured.

Quote
Wikipedia -
Among the most notable companies Apollo has an investment in are ADT,
CareerBuilder, Cox Media Group, Intrado, Rackspace, Redbox, Shutterfly,
Smart & Final, and University of Phoenix.
[en.wikipedia.org]



39°36'17"N 75°44'43"W

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The search engine that doesn't track you.

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Re: Verizon sells Yahoo and AOL for $5 Billion
Posted by: hal
Date: May 03, 2021 11:33AM
I think Verizon did well to get that much for that garbage. Remember when AOL bought Time/Warner for $180 B? Ah, the good ol days...
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Re: Verizon sells Yahoo and AOL for $5 Billion
Posted by: Fritz
Date: May 03, 2021 11:34AM
my how the mighty have sunk like a downed Russian MIG in the Mariana Trench



!#$@@$#!

If there are spelling issues, please pardon, Owen the cat is sitting on my keyboard.
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Re: Verizon sells Yahoo and AOL for $5 Billion
Posted by: ztirffritz
Date: May 03, 2021 12:21PM
Yahoo finance is still useful. The rest of the platform is flotsam.



**************************************
MacResource User Map: [www.zeemaps.com]#
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Re: Verizon sells Yahoo and AOL for $5 Billion
Posted by: testcase
Date: May 03, 2021 02:47PM
I was amazed when Verizon paid for AOL. Then, Verizon forced its' customers to drop their Verizon branded email and forced them to move to AOL.com.

I too am baffled that AOL has not died yet.
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Re: Verizon sells Yahoo and AOL for $5 Billion
Posted by: jonny
Date: May 03, 2021 03:03PM
Remind me again... Why is Verison erasing Yahoo Answers before the sale?
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Re: Verizon sells Yahoo and AOL for $5 Billion
Posted by: mikebw
Date: May 03, 2021 03:20PM
Quote
jonny
Remind me again... Why is Verison erasing Yahoo Answers before the sale?

Same reason they shut down and erased tons of Yahoo groups content.
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