Verizon he decided to put some order in his balance sheets by giving up Verizon Media ad Apollo Global Management – private equity firm – for $ 5 billion. The US telephone operator will retain a 10% stake in the company which, until the transaction is closed, will be called Yahoo and will continue to be led by the CEO Guru Gowrappan. The divestiture must now be approved by the relevant authorities and is expected to come to conclusion within the first half of the year.
To clarify, Verizon Media is one company that also manages, but not limited to, the Yahoo brand (Finance, Mail, etc.): they are included in it AOL and other companies operating in the field of advertising and digital media. In total, there are 900 million monthly active users attributable to Verizon Media platforms. This reduces the presence of Verizon in the specific segment, a path characterized by the acquisition of AOL in 2015 for 4.4 billion dollars and that of Yahoo for 4.83 billion dollars the following year.
Verizon thus returns to its main business, that of telecommunications networks now projected towards 5G, after a 2020 that did not benefit Verizon Media’s budgets. In the year of the pandemic, turnover fell to 7 billion dollars (-5.6% on an annual basis) due to the contraction in advertising revenues caused by the health emergency. 2021 got off to a better start: Verizon points out that Verizon Media currently has good growth prospects after the last two quarters characterized by a strong increase in turnover.
Undoubtedly, in the list of platforms managed by Verizon Media there is no shortage of products that seem destined to have a long life such as Yahoo Finance (to have a benchmark, just think that last month the site that allows you to check the trend of share prices received 325 million visits). At the same time, it is also true that Verizon has already decided to give a cut to some historical services of the Yahoo brand, first of all Answers which will close its doors tomorrow (May 4).