On Monday, Verizon Communications announced that it has agreed to sell its media division, including Yahoo and AOL, to Apollo Global Management Inc for US$5 billion (approximately Rs 369.30 crore) because the company hopes to divest its digital media business.
Verizon has been working hard to develop its media business, declaring that they are almost worthless, with a write-down of US$4.6 billion (approximately Rs 379.7 billion) in 2018. Larger companies such as Facebook and Google have swept the digital advertising market.
As part of the terms of the transaction, Verizon will receive US$4.25 billion (approximately Rs 31,390 crore) in cash, US$750 million (approximately Rs 5,540 crore) in preferred rights, and retain a 10% stake in Verizon Media.
The company said that after the transaction is completed, the business will be called Yahoo. The business is expected to start in the second half of 2021.
According to its website, Verizon Media’s product portfolio includes online brands such as TechCrunch, Makers, Ryot and Flurry.
In 2017, Verizon acquired Yahoo’s Internet assets for approximately US$4.48 billion (approximately Rs 339 billion), betting that its more than 1 billion users will become a wealthy audience for online advertising. It acquired email service AOL for US$4.4 billion (approximately Rs 32.5 billion) in 2015.
Thomson Reuters 2021 ©