HITS

Verizon Media, the global tech and media arm of Verizon, which includes ad tech and media platform businesses, and the Yahoo and AOL brands, has been sold to investment management firm Apollo Funds for $5 billion, the companies announced May 3.

Terms of the deal see Verizon receiving $4.25 billion in cash, preferred interests of $750 million, and retaining a 10 percent stake in Verizon Media, which will rebrand as Yahoo at the close of the transaction, which is expected in the second half of the year.

“We are excited to be joining forces with Apollo,” said Guru Gowrappan, CEO of Verizon Media. “The past two quarters of double-digit growth have demonstrated our ability to transform our media ecosystem. With Apollo’s sector expertise and strategic insight, Yahoo will be well positioned to capitalise on market opportunities, media and transaction experience and continue to grow our full stack digital advertising platform. This transition will help to accelerate our growth for the long- term success of the company.”

Reed Rayman, private equity partner at Apollo, added: “We are thrilled to help unlock the tremendous potential of Yahoo and its unparalleled collection of brands. We have enormous respect and admiration for the great work and progress that the entire organisation has made over the last several years, and we look forward to working with Guru, his talented team, and our partners at Verizon to accelerate Yahoo’s growth in its next chapter.”

Verizon Media reported strong year-over-year revenue growth the past two quarters and Yahoo currently ranks as the fourth-most visited internet property globally, with Yahoo News becoming the fastest growing news organisation on TikTok.

“Verizon Media has done an incredible job turning the business around over the past two and a half years and the growth potential is enormous,” said Hans Vestberg, CEO of Verizon. “The next iteration requires full investment and the right resources. During the strategic review process, Apollo delivered the strongest vision and strategy for the next phase of Verizon Media. I have full confidence that Yahoo will take off in its new home.”

David Sambur, senior partner and co-head of private equity at Apollo, added: “We are big believers in the growth prospects of Yahoo and the macro tailwinds driving growth in digital media, advertising technology and consumer internet platforms. Apollo has a long track record of investing in technology and media companies and we look forward to drawing on that experience to help Yahoo continue to thrive.”