The private equity firm Apollo Global Management has acquired Verizon Media group for $5 billion, the companies announced on Monday. Verizon Media, which includes properties from the former internet empires of AOL and Yahoo, will be rebranded as “Yahoo,” the announcement said. Verizon will keep a 10 percent stake in the company.
The Sale will include online news outlets TechCrunch, Yahoo Finance, Engadget, and others. Verizon bought AOL for $4.4 billion in 2015 and Yahoo two years later for $4.5 billion.
Verizon will get $4.25 billion in cash from the sale along with its 10% stake in the company.
In a press release, Verizon (VZ) said the sale allows the company to “aggressively pursue growth areas and stands to benefit its employees, advertisers, publishing partners and nearly 900 million monthly active users worldwide.”
“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,” said Verizon Media CEO Guru Gowrappan in the release. Gowrappan will continue to lead the new company.
Apollo and Verizon said they expect the deal to close in the second half of 2021. The deal is Verizon’s newest phase near withdrawing the Media market. Verizon already sold its HuffPost to BuzzFeed last year. It also sold off or shut down other properties including Tumblr and Yahoo Answers
Verizon is projected to focus on its wireless networks business and other internet provider businesses