Verizon sells Yahoo and AOL companies to Apollo for $5 billion
Web site pages from Yahoo! Inc., left, and AOL Inc. are displayed on a pc monitor.
Chris Ratcliffe | Bloomberg | Getty Photographs
Verizon will promote its media group to non-public fairness agency Apollo International Administration for $5 billion, the 2 firms introduced Monday. The sale permits Verizon to dump properties from the previous web empires of AOL and Yahoo. Verizon will maintain a ten% stake within the firm and will probably be rebranded to only “Yahoo.”
The sale will see on-line media manufacturers below the previous Yahoo and AOL umbrellas like TechCrunch, Yahoo Finance and Engadget go to Apollo. Verizon purchased AOL for $4.4 billion in 2015, and it purchased Yahoo for $4.5 billion in 2017.
Verizon will get $4.25 billion in money from the sale together with its 10% stake within the firm. Verizon and Apollo mentioned they count on the transaction to shut within the second half of 2021.
There was growing proof not too long ago that Verizon needed to unload its media properties and as a substitute concentrate on its wi-fi networks and different web supplier companies. Final yr, Verizon offered HuffPost to BuzzFeed. It additionally not too long ago offered off or shut down different media properties like Tumblr and Yahoo Solutions.
Earlier than that, Verizon’s authentic imaginative and prescient was to show Yahoo and AOL properties into on-line media behemoths that would tackle Google and Fb‘s dominance in internet marketing. Underneath former AOL CEO Tim Armstrong, the Yahoo and AOL manufacturers had been converged into a brand new on-line media division inside Verizon referred to as Oath.
However the Oath challenge largely failed to achieve momentum, and Armstrong left the corporate in 2018. Oath rebranded once more as Verizon Media Group in November 2018 and was run by Guru Gowrappan. Gowrappan will proceed to guide Yahoo below Apollo.
With the sale of Yahoo and AOL, Verizon signaled it’s not keen on media, in contrast to its rivals. AT&T remains to be making an attempt to develop WarnerMedia right into a streaming competitor to Netflix and Disney, even because it struggles with a great deal of debt from its media acquisitions. Comcast, one other web supplier, remains to be within the media enterprise as nicely with NBCUniversal.
Disclosure: Comcast is the dad or mum firm of NBCUniversal, which owns CNBC.
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