Verizon will keep a 10 percent stake in the new company, which is called Yahoo by the new owner.
Verizon Media was the result of several acquisitions by the telecom giant in an effort to become a major player in the online advertising market.
In 2015 Verizon Media bought AOL – which owns several news sites such as Engadget, HuffPost, TechCrunch, and Autoblog – for $ 4.4 billion, and then acquired Yahoo in 2017 in $ 4.48 billion deal.
With these acquisitions, Verizon aimed to more efficiently reach large audiences and to compete with Google and Facebook for digital advertising revenue.
After the acquisition of Yahoo, which was once among the largest and most powerful internet companies, Verizon created a new division called Oath to bring together media and advertising companies.
By the end of 2018, Verizon had laid off more than 40,000 employees of Oath, written off more than half of the division’s value and killed Oath in favor of Verizon Media.
And in the years that followed, Verizon Media largely integrated the Yahoo brand publicly, while continuing to streamline its operations.
The division started to show revenue growth, rising 10.4 percent in the first quarter of 2021, to reach $ 1.9 billion, supported by a 26 percent increase in advertising revenue.
Verizon agreed to sell HuffPost to BuzzFeed in late 2020, and the deal was completed in early 2021, and it also sold Tumblr, Flickr and Moviefone.
It is unclear why Apollo Global Management wanted to make the deal, but the most likely driver behind the deal is Verizon Media’s ad technology assets, along with various Yahoo activities, such as email, sports, and financials.
Apollo Global Management said: We believe in Yahoo’s growth prospects and its leadership of growth in digital media, advertising technology and consumer internet platforms, adding that it has a strong track record of investing in technology and media companies, and looks forward to leveraging this experience to help Yahoo continue to thrive.
Verizon Media says it attracts nearly 900 million monthly active users worldwide across its brands, which include Yahoo News, Yahoo Finance, Yahoo Sports, Yahoo Entertainment, AOL, TechCrunch, Engadget, Ryot, Rivals, Makers, and Autoblog. And Flurry.