Website pages from Yahoo! Inc., Left, and AOL Inc. are displayed on the computer screen.
Chris Ratcliff | Bloomberg | Getty Images
Verizon will sell the media group to private equity firm Apollo Global Management for $ 5 billion, the company announced on Monday. The sale allows Verizon to unload assets from AOL and Yahoo̵7;s former internet empire.
Verizon will maintain a 10% stake in the company and will only change its name to Yahoo.
The sale will see online media brands under the original Yahoo and AOL umbrella, such as TechCrunch, Yahoo Finance and Engadget, go to Apollo for a lower value than they ordered a few years ago.Verizon bought AOL for $ 4.4 billion in 2015 and Yahoo two years later for $ 4.5 billion.
Verizon will receive $ 4.25 billion in cash from the sale, along with a 10 percent stake in Verizon, and Apollo said they expected the transaction to close in the second half of 2021.
Recently, there is growing evidence that Verizon is looking to sell its media properties and focus on wireless networks and other ISP businesses.Last year, Verizon sold HuffPost to BuzzFeed.It also recently sold or turned off its media feature. Others like Tumblr and Yahoo Answers.
Before that, Verizon’s original vision was to transform Yahoo and AOL’s properties into an online medium that could dominate Google and Facebook in online advertising.Under former AOL CEO Tim Armstrong, the Yahoo and AOL brands formed a division. New online media within Verizon called Oath.
But most of the Oath projects have failed to gain momentum and Armstrong left the company in 2018.Oath changed its name again to Verizon Media Group in November 2018 and run by Guru Gowrappan.Gowrappan will continue to lead Yahoo under. Apollo
With the sale of Yahoo and AOL, Verizon signaled its no longer interest in the media.Unlike its rivals, AT&T is still trying to expand WarnerMedia as its Netflix and Disney streaming rival, although it struggles with huge debt from entering. Buy Comcast Media Another ISP is still in the media business, just like NBCUniversal.
Disclosure: Comcast is the parent company of NBCUniversal, which also owns CNBC.