AOL and Yahoo will be sold again, but this time to a private equity firm, as wireless operator Verizon will sell Verizon Media, which is made up of AOL and Yahoo, to Apollo Global Management in a deal worth $ 5 billion.
Verizon said it would keep a 10% stake in the new company that would be called Yahoo, and Yahoo at the end of the last century was the Internet front, ahead of other giant technology platforms, such as Google and Facebook, while AOL was the portal, bringing in nearly everyone who registered Logging in during the early days of the Internet.
Verizon spent about $ 9 billion buying AOL and Yahoo over two years starting in 2015, hoping to launch a digital media business that would rival Google and Facebook, but it didn’t work – those brands were already fading until then – with Google and Facebook dominating. And, increasingly, Amazon is on the US digital advertising market.
In the year following the purchase of Yahoo, Verizon reduced the value of the joint operation, called “Oath,” by the approximately $ 4.5 billion it spent on Yahoo, while Verizon is ditching its media assets as it refocuses on wireless, and spends billions on licensing. The airwaves are 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, as the digital media sector has been standardizing in recent years as companies seek profitability.
The companies that Verizon sells include Yahoo Finance, Yahoo Mail, tech blogs Engadget, and TechCrunch, and while it’s tough to compete with tech giants for advertising dollars, leading to cost cuts and layoffs, Verizon Medias revenue rose 10% in the fourth quarter of the previous year. , To $ 1.9 billion.
Verizon will get $ 4.25 billion in cash, $ 750 million in favors and a minority stake, and the deal is expected to end in the second half of the year.