Verizon is offloading AOL and Yahoo for a fraction of what it paid

Shawn Knight

Posts: 13,163   +132
Staff member
Recap: AOL and Yahoo were among the most recognizable brands on the web during their respective peaks in the mid-1990s but as they say, nothing lasts forever, especially in the fast-paced world of technology.

Internet pioneers AOL and Yahoo are changing hands one again.

Verizon has announced it is selling its Verizon Media arm to “funds managed by affiliates of Apollo Global Management, Inc.” in a deal valued at $5 billion. Verizon Media includes the aforementioned AOL and Yahoo brands as well as Verizon’s ad tech and media platform businesses.

Verizon, if you recall, purchased AOL for $4.4 billion in 2015 before spending $4.48 billion to scoop up Yahoo the following year. It then rolled the two businesses into a single division called Oath that never gained much traction. It was later renamed as Verizon Media Group.

Apollo is a global investment management firm that owns several big-name companies and projects including craft store chain Michaels and The Venetian in Las Vegas.

“We are thrilled to help unlock the tremendous potential of Yahoo and its unparalleled collection of brands,” said Reed Rayman, private equity partner at Apollo.

Per the deal, Verizon will receive $4.25 billion in cash and $750 million in preferred interests. Verizon will also retain a 10 percent stake in Verizon Media. Assuming regulatory closing conditions go off without a hitch, the deal is expected to close in the second half of 2021.

Image credit Elliott Cowand Jr, LogoDix

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fl21289

Posts: 237   +285
What is AOL used for now a days? Also, I thought Yahoo was owned by AT&T. Had no idea that was bought by Verizon a while back too.
 

dragosmp

Posts: 23   +24
A cynical yet more realistic view would be that Verizon is selling the user data Yahoo and AOL has gathered for 4B. Not sure there was tech of any value to speak of in this sale, just millions of user data, some of it more or less available freely already.
 

nickp91

Posts: 7   +3
In 2000 Yahoo + AOL briefly had a combined valuation of more than $400 billion in today’s dollars
 

lazer

Posts: 385   +117
Yahoo and AOL were the leaders, but like other lost and gone leaders, either keep up with the current style or get lost.