Apollo Funds to acquire Verizon Media for $5bn
Verizon and Apollo Global Management, an investment management firm, have entered into an agreement to acquire Verizon Media for $5 billion.
“Verizon Media has done an incredible job turning the business around over the past two and a half years and the growth potential is enormous,” said Hans Vestberg, CEO, Verizon.
“The next iteration requires full investment and the right resources. During the strategic review process, Apollo delivered the strongest vision and strategy for the next phase of Verizon Media. I have full confidence that Yahoo will take off in its new home.”
The deal has been made between Apollo Global Management and its subsidiaries known as Apollo and is to be funded by capital managed by affiliates of Apollo known as the Apollo Funds.
“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,” said 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.”
Under the terms of the deal, Verizon will receive $4.25 billion in cash, preferred interests of $750 million and retain a 10% stake in the company, which will be known as Yahoo at close of the transaction and will continue to be led by CEO Guru Gowrappan.
“We are excited to be joining forces with Apollo. The past two quarters of double-digit growth have demonstrated our ability to transform our media ecosystem,” said Guru Gowrappan, CEO at Verizon Media.
“With Apollo’s sector expertise and strategic insight, Yahoo will be well positioned to capitalize 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.”
Verizon Media is comprised brands such as Yahoo, AOL, TechCrunch and engadget, and the transaction is subject to certain closing conditions and due to close in the second half of 2021.