The deal is expected to be completed by the end of the year.
Verizon, one of the largest US telecom operators, intends to sell Yahoo and AOL, which are part of the media division of the holding, for $5 billion to the management company Apollo Global Management. This is stated in a press release issued on Monday by Verizon.
Verizon acquired Yahoo and AOL in a series of deals in 2015-2017 for $9 billion. The media holding that was being created was supposed to be an alternative platform for advertisers in the conditions of market dominance by such giants as Amazon, Facebook, and Google. However, the plans could not be implemented, and in 2018, Verizon had to pay off the debts of the media holding at the expense of other corporation divisions.
The deal is expected to be completed by the end of 2021. Under the terms of the agreement, Verizon will retain a ten percent stake in the new media company that Apollo Global Management intends to create through the merger of Yahoo and AOL. Apollo Global Management will pay Verizon $4.25 billion; the remaining amount will be received by it in the form of various assets of Apollo Global Management.
As a result, Amazon, Facebook, and Google maintain a dominant position in the online advertising market, where they have virtually no competitors.
Verizon shares were up 0.42% on the New York Stock Exchange after news of the sale of the media division.