Verizon has sold off its media group, which includes AOL and Yahoo. This news comes after about a week of speculation and rumors. Verizon will get back a fraction of the money that it paid for Yahoo and AOL.
The company will be sold to a private equity firm
Verizon Monday stated in a press release that it is selling off its media group- this report however comes to us via The Verge. The sale puts an end to Verizon’s abortive attempt at managing a media and advertisement division. Though it may not be 100% finalized, it’s said that Verizon sold the group for around $5 billion. That’s much lower than the almost $9 billion that the company originally paid for AOL and Yahoo.
Verizon sold the media group to a company called Apollo Global Management. This is the same company that owns the Venetian Resort in Las Vegas, among other entities. The media group was renamed to just Yahoo. Though Verizon sold off the company, it still retains a 10% stake in it.
Among AOL and Yahoo, there are a handful of other companies that fall under the umbrella. Companies like TechCrunch, Yahoo Sports, and Engadget are part of the deal. This means these companies will now be under the management of Apollo Global Management. There’s no word of how these companies will be affected by this transaction.
The AOL and Yahoo sale could be an attempt to turn the companies’ fortunes around
The newly named Yahoo will be under the direction of Guru Gowrappan. This sale means that the AOL and Yahoo brands still have much value in the internet space, despite being well out of the public eye for some time. It appears to be an attempt to bring these companies back to prominence.
:…we look forward to working with Guru, his talented team, and our partners at Verizon to accelerate Yahoo’s growth in its next chapter,” says Apollo partner Reed Reymond. This indicates that Verizon will still play a part in the progress of Yahoo.
It’s hard to think about how far things have dropped for Yahoo and AOL. During the late ’90s and early 2000s, they were at the top of the food chain, being many peoples’ foray into the world wide web. Now, it seems that the world belongs to Google in that regard. Verizon and Apollo seem to be searching for a niche to fit Yahoo and AOL into in order to keep them from dying out.
Verizon does have a lot on its plate with 5G being a priority, so we may not see much influence from the company. Apollo, on the other hand, will be playing a big part in the new direction of the media group.