Verizon is selling its media group Verizon Media to private equity firm Apollo Global Management for US$5 billion.
Verizon Media currently includes brands such as Yahoo, AOL, RYOT, TechCrunch, and more.
As part of the deal, Verizon will retain a 10% stake in the company, which will be rebranded to Yahoo, and receive US$4.25 billion in cash, preferred interests of US$750 million.
Apollo will acquire the assets of Verizon Media, including its brands and businesses. The company will continue to be led by CEO Guru Gowrappan.
“The past two quarters of double-digit growth have demonstrated our ability to transform our media ecosystem,” Gowrappan says.
“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. This transition will help to accelerate our growth for the long- term success of the company.”
Verizon Media, previously known as Oath, recently sold its digital publication HuffPost to BuzzFeed.
“We are big believers in the growth prospects of Yahoo and the macro tailwinds driving growth in digital media, advertising technology and consumer internet platforms,” says David Sambur, senior partner and co-head of Private Equity at Apollo.
“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.”
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