In a $5 billion transaction, Verizon will sell Verizon Media, which includes the groundbreaking tech networks, to Apollo Global Management. Verizon announced on Monday that it would retain a 10% stake in the new company, which will be known as Yahoo.
Yahoo was the face of the internet at the turn of the century, long before the behemoth tech platforms that followed, such as Google. And AOL was the hub, taking almost everybody online during the early days of the internet.
Verizon had planned to use the purchase of AOL to gain a fast foothold in the mobile industry, having spent over $4 billion on the company in 2015. The idea was to sell digital ads using AOL’s pioneering advertising platform. It invested even more money two years later to buy Yahoo and merge the two companies.
However, the rapid growth of Google and Facebook crushed those dreams, and it became apparent very soon that the two would not meet Verizon’s highest expectations. Verizon wrote down the valuation of the joint operation, dubbed “Oath,” by more than the $4.5 billion it invested on Yahoo a year after purchasing it.
Verizon would receive $4.25 billion in cash, $750 million in preferred interests, and a minority stake in the company as part of the deal announced Monday. The deal includes Verizon Media’s properties, including its brands and businesses including Yahoo and AOL. The transaction is scheduled to be completed in the second half of the year.