Verizon Communications Inc. (NYSE: VZ), Apollo Global Management, LLC (NYSE: APO) – Verizon seeks to sell assets of AOL and Yahoo: report
Verizon Communications Inc. (NYSE: VZ) is said to be looking to sell its digital media assets, including the AOL and Yahoo platforms.
What happened: The New York-based company is in a sales process involving the private equity firm Global Apollo Management Inc. (NYSE: APO) in a deal that could be worth $ 4 billion to $ 5 billion, according to a Wall Street Journal report citing unnamed “people familiar with the matter”.
Verizon acquired AOL in 2015 and Yahoo in 2017, spending a total of more than $ 9 billion to bring the two platforms under its banner. Both had been dominant figures in the early days of the internet, but over time their popularity declined as social media and mobile apps became the driving force behind the online environment.
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Why this happens: Verizon had planned to revive AOL and Yahoo as digital media platforms, with the goal of generating $ 10 billion in annual revenue by 2020. But the company’s digital media business has not responded to the expectations, which led Verizon to depreciate roughly $ 4.5 billion in 2018 while selling its news division HuffPost and blogging platform Tumblr.
For now, Verizon is moving away from these platforms and focusing its energies on expanding its 5G capabilities while continuing to partner with streaming services, including Walt Disney Co. (NYSE: DIS) Disney + and Hulu, along with Verizon, can integrate with its home wireless and Internet offerings.
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