NEW YORK—Verizon has agreed to terms with Apollo Global Management that will see Apollo acquire Verizon Media for $5 billion. Verizon Media consists of Yahoo, AOL and other ad tech and media platform businesses.
Per the deal, Verizon will retain 10% of the spun off company, which will be known as Yahoo. Verizon Media CEO Guru Gowrappan will remain in his position.
“We are excited to be joining forces with Apollo,” said Gowrappan. “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. This transition will help to accelerate our growth for the long- term success of the company.”
Verizon Media has grown over the last two quarters by pushing new ad offerings, consumer ecommerce, subscriptions, betting and strategic partnerships. Yahoo is also popular among Gen Z, as Yahoo News was labeled as the fastest growing news organization on TikTok.
Under the agreement, Verizon will receive $4.25 billion in cash, preferred interests of $750 million and 10% stock in Verizon Media. The transaction includes all of Verizon Media’s brands and businesses.
Verizon estimates that the deal will close in the second half of 2021.
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