Verizon Communications said Monday that it has agreed to sell its media unit, which includes Yahoo and AOL, to Apollo Global Management Inc for $ 5 billion (approximately 36,930 kroner) as it appears to be unloading its digital media business.
Verizon struggles to grow its media business by declaring them almost useless with a write-off of $ 4.6 billion (approximately CZK 33,970) in 2018. Bigger players like Facebook and Google have strengthened the digital advertising market.
Verizon will receive $ 4.25 billion (approximately 31,390 kroner) in cash, preferential interest of $ 750 million (approximately 5,540 kroner) and will retain a 10 percent stake in Verizon Media as part of the terms of the deal.
The business will be called Yahoo when the deal is completed, which is expected in the second half of 2021, the company said.
Verizon Media’s portfolio includes online brands such as TechCrunch, Makers, Ryot and Flurry, according to its website.
In 2017, Verizon bought Yahoo’s Internet properties for about $ 4.48 billion (approximately $ 33,090 crore), betting that its users with more than $ 1 billion would be a fertile audience for online advertising. In 2015, the company acquired AOL’s e-mail service for $ 4.4 billion (approximately Rs 32,500).
© Thomson Reuters 2021