Verizon considers sale of Oath Media assets: report
Verizon (VZ) – Get the report from Verizon Communications Inc. plans to offload its once-touted media properties, which include AOL and Yahoo, for about half of what it paid for them, according to a report released Wednesday.
The telecommunications giant is working with Apollo Global Management APO on a potential sale, which could fetch a price of $ 4 billion to $ 5 billion, the Wall Street Journal reported citing people familiar with the matter.
Verizon acquired AOL in 2015 for $ 4.4 billion, prompting some to accuse the company of engaging in a business outside of its core competencies, a process dubbed “diworsification.”
Verizon acquired Yahoo in 2017 for $ 4.8 billion, combining it with its AOL operations in an entity called Oath, which was supposed to launch its online advertising business.
The sale ended a long saga for Yahoo, one of Silicon Valley’s first star companies. In 2008, founder Jerry Yang engaged in intermittent talks with Microsoft, which offered nearly $ 45 billion for the Web pioneer. Microsoft ultimately backed out of a deal citing price differences.
AOL was once the dominant Internet service provider during the height of the dot-com boom of the late 1990s and early 2000s. It turned that status and its valuation into a $ 165 billion acquisition of Time Warner. dollars, still spectacular. The pairing proved unworkable as the dot-com bust and the Great Recession set in, and Time Warner ended up parting ways with AOL in 2009. The rest of Time Warner was bought by rival Verizon. , AT&T. (T) – Get the AT&T Inc. in 2018.
Despite the high hopes and deep pockets behind the Oath effort, Verizon wrote down $ 4.6 billion in goodwill from the joint venture at the end of 2018.
Verizon shares fell 1 cent, or 0.003%, to $ 56.42 after-market.