Apollo Global Management said Wednesday that it has completed its purchase of internet icon Yahoo -- formerly Verizon Media -- for about $5 billion, from Verizon Communications. As part of the deal, Verizon will retain a 10% ownership interest in the new company.
Verizon and Apollo first announced the deal in May, and the sale includes ad tech assets.
Verizon bought Yahoo in 2017 for about $4.5 billion and later combined it with another iconic internet brand AOL -- which it purchased in 2015 for $4.4 billion -- into a new entity called Oath. Oath was renamed Verizon Media in 2018, shortly after the telco took a $4.5 billion write-down on the unit.
“We look forward to partnering with Yahoo's talented employee base to build on the company's strong momentum and position the new Yahoo for long-term success as a standalone consumer internet and digital media leader,” Apollo partner Reed Rayman said in a press release. “We couldn’t be more excited about this next chapter for Yahoo as we look to invest in growth across the business, including accelerating its customer-first offerings and commerce capabilities, expanding its reach and enhancing the daily user experience.”
Verizon Media CEO Guru Gowrappan will continue as CEO of Yahoo under its new owners.
“This is a new era for Yahoo,” Gowrappan said in a press release. “The close of the deal heralds an exciting time of renewed opportunity for us as a standalone entity. We anticipate that the coming months and years will bring fresh growth and innovation for Yahoo as a business and a brand, and we look forward to creating that future with our new partners.”
