Associated PressMay 4, 2021 12:56:56 IST
AOL and Yahoo will once again be sold to private equity firms. Wireless company Verizon will sell Verizon Media, a former pioneering technology platform, to Apollo Global Management for a $ 5 billion transaction. Verizon announced on Monday that it will hold a 10% stake in a new company called Yahoo.
At the end of the last century, Yahoo was the face of the Internet, ahead of giant technology platforms such as Google and Facebook. And AOL is a portal that brought almost everyone who logged on in the early days of the Internet.
Verizon has spent about $ 9 billion on AOL and Yahoo purchases over the two years from 2015, hoping to grow its digital media business, which competes with Google and Facebook. That didn’t work as Google, Facebook, and increasingly Amazon dominate the US digital advertising market — those brands were still declining. The year after the acquisition of Yahoo, Verizon wrote down the value of an integrated business called “Oath” at the value of about $ 4.5 billion spent on Yahoo.
Verizon has refocused on wireless and has reduced media assets by spending billions of dollars on licensing the radio waves needed for the next generation of faster mobile services called 5G.It Selling blog site Tumblr 2019 and the end of last year from the HuffPost to BuzzFeed. In recent years, the digital media sector has been integrated as businesses pursue profitability.
Properties for sale by Verizon include Yahoo Finance, Yahoo Mail, tech blogs Engadget and TechCrunch.
Competing with tech giants for advertising costs has been difficult, leading to cost savings and severances, but Verizon Media’s most recent quarterly revenues increased 10% year-on-year to $ 1.9 billion. According to Verizon and Apollo, the division has nearly 900 million monthly users and will generate $ 7 billion in revenue in 2020.
Apollo said they “have a strong belief in Yahoo’s growth prospects” and expects the overall growth of digital advertising to boost Yahoo as well, Apollo’s senior partner David Sambar was prepared. Said in a statement. Apollo has invested in the photography website Shutterfly and other media and technology companies such as TV and radio stations previously owned by Cox.
Apollo is betting that the data that Yahoo will collect from users and from users who log in to products such as email will appeal to advertisers as follows: Changes in ad tracking technology, Forester analyst Joanna O’Connell said.
Financial companies have played an increasingly important role in traditional media in recent years as the newspaper industry suffers from the decline of print advertising, chain acquisitions, and cost and job cuts.
Verizon will receive $ 4.25 billion in cash, $ 750 million in priority, and minority interests.
The transaction is expected to close in the second half of this year.
New York-based Verizon Communications Inc.’s share price rose less than 1% on Monday.
Once pioneering technology platforms AOL and Yahoo are selling for $ 5 billion in transactions-Technology News, Firstpost
Source link Once pioneering technology platforms AOL and Yahoo are selling for $ 5 billion in transactions-Technology News, Firstpost