Verizon just sold AOL and Yahoo for $5 billion, and the new company will be known as 'Yahoo' going forward
Verizonis selling AOL and Yahoofor $5 billion.
- The new owner is private equity firm
Apollo Global Management.
- Going forward, AOL and Yahoo will be known solely as Yahoo.
After just over five years of ownership, Verizon has sold its ownership stake in Yahoo and AOL for $5 billion, the telecom giant announced on Monday morning.
The new company formed by AOL and Yahoo will be known solely as Yahoo, and the new owner is private equity firm
"We are big believers in the growth prospects of Yahoo," Apollo senior partner and co-head of private equity David Sambur said in the announcement.
Verizon originally purchased AOL back in May 2015 for $4.4 billion, and Yahoo in July 2016 for $4.83 billion - making the sale of both companies for $5 billion about a 50% overall loss. The two companies were temporarily known as "Oath," an umbrella unit within Verizon that included AOL and Yahoo. It was later rebranded as Verizon Media Group.
Verizon separately sold the Huffington Post in late 2020, which it acquired in its purchase of AOL, to Buzzfeed.
The telecoms giant has struggled to turn a profit with AOL and Yahoo, and was forced to write down nearly $5 billion in Oath-related losses in 2018. With the sale, Verizon is officially exiting the media business, though it maintains minority stakes in a variety of media organizations - including a 10% stake in the new version of Yahoo.
Prior to the acquisition news, Apollo Global Management's billionaire CEO Leon Black stepped down earlier this year as
Apollo and Verizon expect the deal to close in the second half of this year.
Got a tip? Contact Insider senior correspondent Ben Gilbert via email (email@example.com), or Twitter DM (@realbengilbert). We can keep sources anonymous. Use a non-work device to reach out. PR pitches by email only, please.
- Elizabeth Holmes ordered dinners for Theranos staff but made sure they weren't delivered until after 8 p.m. so they worked late: book
- My twin and I were in separate classrooms in school. Our joint math lesson made me realize how silly that was.
- 2,000 years before 'manscaping' and smooth armpits, the Romans were seriously into hair removal, archaeological findings show
- Major train accidents that India witnessed in last 15 years
- Odisha rail crash: Rescuers try to raise buried coach, death toll at 238
- Largest road networks in the world – India beats China to take the second spot
- Manoj Bajpayee joins the league of on-screen lawyers like Pankaj Tripathi, Shriya Pilgaonkar & more
- List of famous things to buy in Lonavala