announced Private equity firm Apollo Global Management has completed its acquisition of Yahoo (formerly Verizon Media Group, formerly Oath).
The deal is worth $5 billion. Verizon holds 10 percent of the newly renamed company.
“This is a new era for Yahoo,” Yahoo CEO (and former Verizon Media Group president) Guru Choraban said in a statement.
“The completion of the transaction heralds an exciting time for a renewed opportunity for us as an independent entity,” he added. We expect the coming months and years to bring new growth and innovation to Yahoo as a company and brand, and we look forward to creating that future with our new partners.
There have been reports that Goraban may not stay on as the company’s long-term CEO now that the deal has been closed. But he is still in office for now.
In addition to Yahoo’s nominal holdings (mail, sports, and finance), it also owns AOL, TechCrunch, Engadget and the interactive media brand RYOT.
The global brand has nearly 900 million monthly active users worldwide. It is currently the third largest property online.
The deal ends a years-long effort by Verizon to make a sweeping move into online media, specifically around Adtech, which has proven too costly, often unprofitable, and not fundamental enough for the carrier’s larger growth strategy.
The news comes during a turbulent time for online media and amid increasing industry consolidation.
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Yahoo looks to a new future after the acquisition
Verizon acquired AOL in 2015 for $4.4 billion, followed by the purchase of Yahoo for $4.5 billion two years later. The two companies were merged into a joint group called Oath.
In 2019, Verizon sold Tumblr, before selling the Huffington Post last year.
It is not clear how the new owner would direct the large company differently. But one strategy might be for Apollo Global Management to sell parts.
However, Apollo Global Management, for its part, promised to continue investing in the newly acquired property. All functionality at the time of delivery was maintained for at least an initial period.
“We look forward to partnering with Yahoo’s talented base of employees,” said Apollo Global Management. This is to build on the company’s strong momentum and the new company’s long-term success as an independent leader of the Internet and digital media for consumers.
“We couldn’t be more excited about Yahoo’s next chapter as we look to invest in growth across the business, including accelerating customer-first offerings and commerce capabilities, expanding their reach and enhancing the everyday user experience.”
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