Verizon has sold its Verizon Media division for USD 5 billion to private equity firm Apollo Global Management. Under the deal, Verizon will receive USD 4.25 billion in cash and USD 750 million worth of preferred interests. It will also retain a 10 percent stake in the operations, which include Yahoo and AOL. At close, the business will be led by Verizon Media CEO Guru Gowrappan and called Yahoo.
Gowrappan said that after two quarters of double-digit growth, the operations are well-positioned to capitalise on market opportunities and grow in digital advertising services. The business counts nearly 900 million monthly active users across its news, sports, finance and messaging platforms.
Verizon said Apollo offered the best plan to take the media business into its next phase of growth, with the necessary investment. The sale comes amid a renewed focus on networks at Verizon, as it pours billions into expanding its 5G network and broadband services.
The transaction is expected to close in the second half of 2021.
