Verizon Exits Media Business, Selling Yahoo, AOL for $5B

Verizon is exiting the media business, selling most of Yahoo, AOL and its other media assets to funds managed by Apollo for $5 billion, the telco said Monday. Verizon will retain 10% of the company, which will be known as Yahoo at close and continue to be led by its CEO (see personals section, this issue). Verizon bought AOL in 2015 for $4.4 billion, Yahoo in 2017 for $4.5 billion. “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,” but “the next iteration requires full investment and the right resources,” said Verizon CEO Hans Vestberg. The companies hope the deal will close in late 2021. “Strategically this is the right thing for Verizon to do,” New Street’s Jonathan Chaplin told investors. “The Media business has no material value to its other businesses,” he said: “It allows Verizon mgmt. to focus attention and resources on Wireless. The transaction also creates a strong strategic contrast with AT&T, who is doubling down on investments in its media properties and walking off the field in wireless.”