Pioneer web service providers Yahoo and AOL to be sold

Tuesday, 04 May 2021 - 2:14

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Two pioneering web services of the internet age, Yahoo and AOL, have been sold again after the latest owner failed to revive their fortunes according to foreign media.

US telecoms giant Verizon is selling its media assets, which include the two companies, to a US private equity firm in a deal worth US$5bn.

Verizon bought Yahoo in 2017 and AOL in 2015 for a combined price tag of US $9bn.

Yahoo and AOL were once trailblazers, but were subsequently overshadowed by firms like Google and Facebook.

Verizon will sell its media group to private equity firm Apollo Global Management for $5 billion, the companies announced Monday. The sale allows Verizon to offload properties from the former internet empires of AOL and Yahoo.

Verizon will keep a 10% stake in the company and it will be rebranded to just Yahoo.

The sale will see online media brands under the former Yahoo and AOL umbrellas like TechCrunch, Yahoo Finance and Engadget go to Apollo at much lower valuations than they commanded just a few years ago. Verizon bought AOL for $4.4 billion in 2015 and Yahoo two years later for $4.5 billion.

Verizon will get $4.25 billion in cash from the sale along with its 10% stake in the company. Verizon and Apollo said they expect the transaction to close in the second half of 2021.