Recap: AOL and Yahoo were among the most recognizable brands on the web during their respective peaks in the mid-1990s but as they say, nothing lasts forever, especially in the fast-paced world of technology.
Internet pioneers AOL and Yahoo are changing hands one again.
Verizon has announced it is selling its Verizon Media arm to “funds managed by affiliates of Apollo Global Management, Inc.” in a deal valued at $5 billion. Verizon Media includes the aforementioned AOL and Yahoo brands as well as Verizon’s ad tech and media platform businesses.
Verizon, if you recall, purchased AOL for $4.4 billion in 2015 before spending $4.48 billion to scoop up Yahoo the following year. It then rolled the two businesses into a single division called Oath that never gained much traction. It was later renamed as Verizon Media Group.
Apollo is a global investment management firm that owns several big-name companies and projects including craft store chain Michaels and The Venetian in Las Vegas.
“We are thrilled to help unlock the tremendous potential of Yahoo and its unparalleled collection of brands,” said Reed Rayman, private equity partner at Apollo.
Per the deal, Verizon will receive $4.25 billion in cash and $750 million in preferred interests. Verizon will also retain a 10 percent stake in Verizon Media. Assuming regulatory closing conditions go off without a hitch, the deal is expected to close in the second half of 2021.