Verizon Sells Media Business to Apollo Funds
US telecommunications operator Verizon agreed to sell its Media unit to Apollo Global Management for $5 billion. The sale includes both AOL and Yahoo.
After the transaction closes, the business will be known as Yahoo and will continue to be run by CEO Guru Gowrappan. Verizon will retain a 10% stake in the business. Verizon acquired AOL for $4.4 billion in 2015 and spent $4.8 billion on Yahoo in 2017. Since then, reports about a potential sale of the media assets have circulated frequently, as synergies with its wireless business proved hard to implement.
“We are excited to be joining forces with Apollo,” said Guru Gowrappan, CEO of Verizon Media. “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. This transition will help to accelerate our growth for the long- term success of the company.”
Under the terms of the agreement, Verizon will receive $4.25 billion in cash, preferred interests of $750 million and retain a 10% stake in Verizon Media. The transaction includes the assets of Verizon Media, including its brands and businesses. The transaction is subject to satisfaction of certain closing conditions and expected to close in the second half of 2021.