A private equity firm will be acquiring Yahoo and AOL for a combined sum of $5 billion, as disclosed by Verizon – the parent company – on Monday.
Verizon will be selling off its entire media unit to Apollo Global Management alongside Yahoo and AOL.
According to Verizon, it would retain a 10 percent stake in the company that would be renamed to Yahoo, however, without the signature exclamation point.
Speaking on the sale, the head of Verizon’s media arm, Guru Gowrappan, said that Apollo would provide all the needed resources to ensure that the company thrived.
Gowrappan said, “This next evolution of Yahoo will be the most thrilling yet.”
Adding that “Yahoo will now have the investment and resources needed to elevate our business to the next level.”
In 2015, Verizon acquired AOL for $4.4 billion, as the company’s popularity dwindled in the face of the emergence of revolutionary products in the tech ecosystem.
Through the years, companies such as TechCrunch, HuffPost, among others became a part of the AOL list of acquired brands.
Yahoo, on the other hand, was acquired for $4.5 billion in 2017 by Verizon in the twilight days of the company, as it lost momentum to brands like Facebook and Google.
On the possibilities ahead for Yahoo, a senior partner at Apollo, David Sambur, said, “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.”