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Cheat Sheet: What Yahoo offers Apollo Global Management

Digiday 04 May 2021 04:01
media puzzle
May 4, 2021 by Max Willens

After years inside a company whose CEO is not interested in media, Verizon Media has been gobbled up by a private equity giant that has grown quite interested in media.

Its new owners, Apollo Global Management, could use the ad-tech infrastructure to deal the rest of its media assets a more favorable hand after Google’s shuffled up the deck of digital advertising. 

The key details

  • Apollo paid $5 billion for Verizon Media. Verizon will receive $4.25 billion in cash, $750 million in preferred interests and retain a 10% stake in the company. 
  • Verizon Media CEO Guru Gowrappan will remain in place as CEO of the new company, now rebranded as Yahoo. 
  • Verizon Media, soon to be known as Yahoo, is still about as big as it gets for a non-platform media company: It reaches close to 900 million people worldwide every month.

Cheap at half the price

Analysts scratched their heads at the price Apollo paid for Verizon Media. Though its constituent parts had lost quite a bit of value since Verizon originally acquired them — Verizon famously wrote down the value of its media business by $4.6 billion in 2018, after paying a combined $8.9 billion for AOL and Yahoo — they still generate significant revenue: Verizon Media reported $2.3 billion in revenue in the fourth quarter of 2020 alone, and it typically generates about $7 billion in revenue every year. 

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Verizon MediaVerizonYahoo
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