The alternative asset manager will aim to position the new Yahoo for long-term success as an independent consumer internet and digital media leader
Yahoo office in Burbank, California. (Credit: Beatrice Murch from South America/Wikimedia Commons)
Apollo Global Management and funds managed by its affiliates (Apollo Funds) have wrapped up the previously announced $5bn acquisition of Verizon Media that owns Yahoo, AOL and other businesses.
The acquired technology and media businesses have been renamed from Verizon Media to Yahoo. Their seller Verizon Communications has been given a stake of 10% in the company, which also owns some ad tech and media platform businesses.
Apollo Funds partner Reed Rayman said: “We look forward to partnering with Yahoo’s talented employee base to build on the company’s strong momentum and position the new Yahoo for long-term success as a standalone consumer internet and digital media leader.
“We couldn’t be more excited about this next chapter for Yahoo as we look to invest in growth across the business, including accelerating its customer-first offerings and commerce capabilities, expanding its reach and enhancing the daily user experience.”
The consideration to Verizon Communications comprises $4.25bn in cash and $750m in preferred interests, as per the terms of the deal signed in May 2021.
The company had taken up the deal to enable its media business to aggressively pursue growth areas, while benefiting its employees, advertisers, publishing partners, and users.
Yahoo has been among the major technology and media companies for close to 30 years. Claimed to be the third-largest property on the internet, it is said to have around 900 million monthly active users from various parts of the world.
It was acquired by Verizon Communications for $4.5bn in 2017. AOL, on the other hand, was acquired by it in 2015 for $4.4bn.
Apollo Funds said that its investment will help Yahoo gain new growth.
Guru Gowrappan, who had been the CEO of Verizon Media, will continue in the same role at Yahoo.
Gowrappan said: “This is a new era for Yahoo. The close of the deal heralds an exciting time of renewed opportunity for us as a standalone entity.
“We anticipate that the coming months and years will bring fresh growth and innovation for Yahoo as a business and a brand, and we look forward to creating that future with our new partners.”