Verizon will sell Verizon Media, which consists of the leading technology platforms, to Apollo Global Management in a $ 5 billion deal.
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Verizon said Monday it will keep a 10% stake in the new company that it will call Yahoo.
Yahoo was at the end of the last century the internet front, one ahead of the tech giants to follow, such as Google. And AOL was the gateway, bringing almost everyone who logged in during the Internet’s early days online.
Verizon was hoping to ride the acquisition of AOL for a quick entry into the mobile market, as it spent more than $ 4 billion on the company in 2015. The plan was to use AOL’s advertising platform to sell digital ads. Two years later, it spent more to acquire Yahoo and merge the two.
However, the speed with which Google and Facebook grew dashed those hopes and it quickly became clear that it was unlikely to reach Verizon’s highest aspirations for both of them.
In the year following the purchase of Yahoo, Verizon reduced the value of the joint operation called “Oath” by more than $ 4.5 billion it spent on Yahoo.
As part of the deal announced Monday, Verizon will receive $ 4.25 billion in cash, $ 750 million in favorable interests and a minority stake. The transaction involves Verizon Media’s assets, including its brands and companies such as Yahoo and AOL.
The deal is expected to close in the second half of the year.