Yahoo and AOL are Back for Sale
American telecom giant Verizon would plan to get rid of Yahoo and AOL again. The company has invested $ 9 billion in both brands over the years.
According to The Wall Street Journal, it hopes to get another 4 to 5 billion of that back on sale. Both Yahoo and AOL were internet giants at one point, but both brands have lost a lot of their feathers.
According to the newspaper, Verizon is thinking of selling the brands to a private equity fund called Apollo Global Management. However, the deal has not yet been confirmed by the relevant parties, and much information is not known about it.
Verizon is a US telco that bought AOL for $ 4.4 billion in 2015. Two years later, it also bought Yahoo for $ 4.5 billion. Verizon hoped to offer an opponent to players such as Google and Facebook in the online advertising market with this new media division. The fame of both companies was already waning at the time, although Yahoo continues to hold a small, profitable ad market share to this day. However, that does not seem enough for the telco, which can use some cash to build infrastructure around 5G.
The company’s media arm includes services like Yahoo Finance and Yahoo Mail, as well as a range of popular news sites, including TechCrunch and Engadget. The division generated $ 7 billion in revenue last year, about $ 3 billion less than Verizon’s forecast.
Verizon has been selling media from this division in chunks with declining revenues and no real strategic plan for some time now. For example, Tumblr was sold two years ago to Automattic, a company that also owns WordPress. The internet newspaper HuffPost was sold at the end of last year and is now part of the media company BuzzFeed. Both brands were sold at a loss.