SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Verizon Communications (VZ)
VZ 35.00+0.5%May 26 4:00 PM EDT

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
From: Ms. Baby Boomer5/3/2021 11:33:28 AM
4 Recommendations

Recommended By
Eric L
John Hayman
Jon Koplik
WillisL

   of 1950
 
Verizon to offload Yahoo,
AOL for $5 billion...


Verizon Communications Inc (VZ.N) is getting rid of its media businesses that include iconic brands Yahoo and AOL for $5 billion, ending an expensive and unsuccessful run in the media and advertising world.

Despite spending more than a decade and billions of dollars building a stable of internet brands, the New York-based telecom company has struggled to make headway in a highly competitive internet advertising space dominated by Facebook Inc (FB.O) and Google.

Having written $4.6 billion off the value of the businesses in 2018, Verizon will get just $4.25 billion in cash from private equity firm Apollo Global (APO.N), along with preferred interests of $750 million and a 10% stake in the unit - about half of what it had paid for the businesses.

The move concludes a steady drip of deals which saw Verizon sell blogging platform Tumblr in 2019 for an undisclosed sum and news website HuffPost to BuzzFeed last year.

The unit, which was previously named Oath and recently renamed Verizon Media, will now be called Yahoo when the deal closes around the second half of 2021 and continue to be helmed by Guru Gowrappan.

For Apollo, the deal comes at a time when the big internet platforms have sewn up huge portions of the digital advertising market, drawing regulatory scrutiny over their practices.

Reuters reported that Verizon sought buyers for Yahoo Finance in 2019, and some industry estimates had valued that business alone at around $2 billion.

That compares to the roughly $4.48 billion Verizon spent on Yahoo in 2017, betting its 1 billion-plus users would be a fertile audience for online ads. It acquired email service AOL for $4.4 billion in 2015.

Verizon Media's portfolio also includes online brands such as TechCrunch, Makers, Ryot and Flurry, according to its website. It reported revenue of $1.9 billion in the first quarter of 2021....



reuters.com

M
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext