- Title: Verizon to sell media business, including Yahoo, AOL to Apollo for $5 bln
- Date: 3rd May 2021
- Summary: NEW YORK, NEW YORK, UNITED STATES (FILE) (REUTERS) VARIOUS OF VERIZON STORE
- Embargoed: 17th May 2021 14:30
- Keywords: AOL Apollo Global Varizon Yahoo divestiture media assets sale
- Location: NEW YORK, NEW YORK, + SUNNYVALE, CALIFORNIA, UNITED STATES / ROLLE, SWITZERLAND
- City: NEW YORK, NEW YORK, + SUNNYVALE, CALIFORNIA, UNITED STATES / ROLLE, SWITZERLAND
- Country: USA
- Topics: Company News Markets,Economic Events,United States
- Reuters ID: LVA001EBESX1J
- Aspect Ratio: 16:9
- Story Text: Verizon Communications said on Monday (May 3) it has agreed to sell its media unit, which includes Yahoo and AOL, to Apollo Global Management for $5 billion, as it looks to offload its digital media business.
Verizon has struggled to grow its media business, declaring them nearly worthless with a $4.6 billion write-down in 2018. Bigger players such as Facebook and Google have swept the digital advertising market.
Verizon will get $4.25 billion in cash, preferred interests of $750 million, and retain a 10% stake in Verizon Media, as part of the deal terms.
The business will be called Yahoo when the deal closes, which is expected in the second half of 2021, the company said.
Verizon Media's portfolio includes online brands such as TechCrunch, Makers, Ryot, and Flurry, according to its website. It reported revenue of $1.9 billion in the first quarter of 2021.
In 2017, Verizon bought Yahoo's internet properties for about $4.48 billion, betting its 1 billion-plus users would be a fertile audience for online ads. It acquired the email service AOL for $4.4 billion in 2015.
(Production: Aleksandra Michalska) - Copyright Holder: FILE REUTERS (CAN SELL)
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