Apollo to acquire Verizon Media in $5BN deal
| 03 May 2021
In a transaction intended to accelerate growth of the leading Internet and digital media firm, funds managed by affiliates of Apollo Global Management have entered into an agreement with comms giant Verizon to but its Verizon Media business for $5 billion.
Verizon Media logo 16Sep2020
The global technology and media company is made up of a number of brands such as Yahoo and AOL, as well as well as an ad tech and media platform businesses. Verizon Media reported strong, diversified year-over-year revenue growth the past two quarters, driven by ad offerings, consumer ecommerce, subscriptions, betting and strategic partnerships. Yahoo, still one of the best recognised digital media brands in the world and the fourth most visited internet property globally, is said to have become the fastest growing news organization on TikTok.

Under the terms of the agreement, Verizon will receive $4.25 billion in cash, preferred interests of $750 million and retain a 10% stake in Verizon Media. The transaction includes the assets of Verizon Media, including its brands and businesses. The transaction is subject to satisfaction of certain closing conditions and expected to close in the second half of 2021 and the new business will be rebranded as Yahoo.

The new organisation will continue to be led by CEO Guru Gowrappan. Commenting on the deal and the prospects for the new company he said: “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 capitalise 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.”

“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,” added David Sambur, senior partner and co-head of private equity at Apollo. “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.”