Communications Inc. has agreed to sell Yahoo and AOL to Apollo Global Management Inc for $5 billion. The company is looking to offload its digital media business.
Verizon has struggled to grow its media business, declaring them nearly worthless with a $4.6 billion write-down in 2018. Bigger players such as Facebook and Google have sweeped the digital advertising market.
According to the deal, Verizon will receive $4.25 billion in cash, preferred interests of $750 million and retain a 10% stake in Verizon Media.
After the closing of the deal, the business will be called Yahoo, which is expected in the second half of 2021.
As per the website, Verizon Media's portfolio includes online brands such as TechCrunch, Makers, Ryot and Flurry. It reported revenue of $1.9 billion in the first quarter of 2021.
In 2017, Verizon bought Yahoo's internet properties for about $4.48 billion, betting its 1 billion-plus users would be a fertile audience for online ads. It acquired email service AOL for $4.4 billion in 2015.
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