- Today Verizon (NYSE: VZ) and Apollo Global Management, Inc. (NYSE: APO) announced that funds managed by affiliates of Apollo entered into an agreement to buy Verizon Media for $5 billion. These are the details.
Today Verizon (NYSE: VZ) and Apollo Global Management, Inc. (NYSE: APO) announced that funds managed by affiliates of Apollo (“Apollo Funds”) entered into an agreement to buy Verizon Media for $5 billion. And Verizon will retain a 10% stake in the company – which will be known as Yahoo at the close of the transaction and continue to be led by CEO Guru Gowrappan.
Verizon Media is comprised of a number of iconic brands like Yahoo and AOL as well as leading ad tech and media platform businesses. This corporate carveout will enable Verizon Media to aggressively pursue growth areas and the deal stands to benefit employees, advertisers, publishing partners, and nearly 900 million monthly active users worldwide.
Verizon Media had reported strong and diversified year-over-year revenue growth the past two quarters, driven by innovative ad offerings, consumer e-commerce, subscriptions, betting and strategic partnerships. And Yahoo – one of the best recognized digital media brands in the world and the fourth most visited internet property globally – continues to evolve as a key destination for finance and news among Gen Z. This was most recently marked by Yahoo News becoming the fastest-growing news organization on TikTok.
Under the terms of the deal, Verizon will receive $4.25 billion in cash, preferred interests of $750 million, and retain a 10% stake in Verizon Media. And the transaction includes the assets of Verizon Media, including its brands and businesses. The deal is subject to satisfaction of certain closing conditions and expected to close in the second half of 2021.
KEY QUOTES:
“We are excited to be joining forces with Apollo. 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 capitalize 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.”
— Guru Gowrappan, CEO, Verizon Media
“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 organization 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.”
— Reed Rayman, Private Equity Partner at Apollo
“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.”
— David Sambur, Senior Partner and Co-Head of Private Equity at Apollo
“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. 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.”
— Hans Vestberg, CEO, Verizon
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.
