VERIZON SELLS OFF AOL AND YAHOO FOR $5BILLION

Verizon has sold off its media group properties to apollo global management, the parent company of the venetian resort and casino.

The sale was reportedly at a loss for verizon who acquired AOL and yahoo! in 2015 and 2017 respectively for nearly $9billion combined but sold them both for $5billion.

However, verizon remains with 10% stake in the media group.

Guru Gowrappan, who will stay on as chief executive of the media company, says the transaction allows Verizon to focus on long-term growth.

“We are excited to be joining forces with Apollo,” Gowrappan said in the release. “The past two quarters of double-digit growth have demonstrated our ability to transform our media ecosystem. With Apollo’s sector expertise and strategic insight, Yahoo will be well positioned to capitalize on market opportunities, media and transaction experience and continue to grow our full stack digital advertising platform”.

Even though players like Google and Facebook have since surpassed Yahoo and AOL, they still include such assets as Yahoo News, Yahoo Finance and AOL’s TechCrunch and Engadget under their belt. Also going for them, is Verizon’s hold on advertising technology which shapes user data into profit.

David Sambur, Apollo’s partner and co-head of private equity, said “Apollo has a long track record of investing in technology and media companies and we look forward to drawing on that experience to help Yahoo continue to thrive.”