Telecom Verizon Communications is selling its media businesses that include Yahoo and AOL for USD 5 billion to private equity firm Apollo Global. Verizon sold blogging platform Tumblr in 2019 and last year the company sold HuffPost to BuzzFeed. The new agreement means that Verizon is ending its operations in media.
Verizon will retain a 10% stake in the company, which will be known as Yahoo and continue to be led by CEO Guru Gowrappan.
“We are excited to be joining forces with Apollo,” said Gowrappan. “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 USD 4.25 billion in cash, preferred interests of USD 750 million and retain a 10% stake in Verizon Media.