Verizon has agreed to sell AOL and Yahoo to private equity company Apollo Global Management for $5 billion, less than half of the $9 billion dollars it paid for the two brands.
Verizon is expected to keep a 10% interest in the firm. With this purchase, Apollo, which already owned the arts and crafts shop in Michaels and the Venetian resort in Las Vegas, is clearly diversifying its portfolio.
Apollo’s business strategy centers around generating more income from each of its 900 million active monthly users. According to some officials at the private equity company, Verizon’s placement of the media industry as a complement to its main mobile business – aims to help it attract customers and decrease the number of people who leave – means it has not investigated some possibilities to maximize the value of each purchased asset.
Yahoo, for example, has long been a popular website for sports betting, although it is not officially permitted to do so. Apollo, on the other hand, has gaming licenses in over 200 jurisdictions.
Reed Rayman, a partner of Apollo, mentions that they are pleased to assist uncover the immense potential of Yahoo and its unique collection of brands. The company has huge admiration and respect for the tremendous effort and success that the whole business has done in recent years, and they look forward to working with Guru, his brilliant team, and their partners from Verizon to drive Yahoo’s development in their next chapter.
Verizon has also been said to be considering selling its media holdings in order to focus on its cellular networks and other internet provider operations. Verizon sold HuffPost to Buzzfeed in 2020. Other media assets, such as Tumblr and Yahoo Answers, were reported to be sold or shut down.
Some would consider AOL and Yahoo to be the first internet pioneers. Silicon Valley, on the other hand, has forged forward to build new digital assets, such as Google, which has ostensibly replaced Yahoo, and AOL, which has subsequently been displaced by cable companies.