Yahoo, AOL go on sales for $5 bln to new investors Apollo Global
Verizon has agreed to sell Yahoo and AOL to Apollo Global Management in a deal worth $5 billion, the companies announced Monday.
The business housing the two brands, Verizon Media, is to be renamed (yet again) to Yahoo (sans the brand’s stylized exclamation point), and the sale will also include its advertising technology business.
Verizon will retain a 10 percent stake in the newly formed media group, the company said in a statement.
Guru Gowrappan, the head of Verizon’s media business, who will continue to lead the new Yahoo, was optimistic in a note to employees Monday morning.
“This next evolution of Yahoo will be the most thrilling yet,” he said in the memo, which was obtained by The New York Times.
He added that Apollo would allow the business to grow, a more difficult prospect when it was operating within Verizon, which was planning to spend even more money to expand its next-generation 5G wireless network.
“Yahoo will now have the investment and resources needed to elevate our business to the next level,” Gowrappan said, suggesting that the company will be able to develop new sources of income such as subscriptions and e-commerce. The company does not plan any layoffs for now.
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The deal signals an unraveling of a strategy Verizon heralded in 2015 and is the latest turn in the winding history of two of the web’s pioneers.
Yahoo used to be the front page of the internet, cataloging the furious pace of new websites that sprang up in the late 1990s. AOL was once the service that millions of people used to get online.