Apollo Global Management agreed to buy Verizon’s media business, including its ad-tech assets, for $5 billion.
Verizon Media will be known as Yahoo when the transaction closes and Verizon will retain a 10% stake in the company, which will be run by current CEO Guru Gowrappan.
Apollo Global, which manages billions in assets, is already in the media business having bought Cox Media Group.
Verizon built its media business by acquiring AOL for $4.4 billion and Yahoo for $4.5 billion and combining them to form the digital media company Oath. It launched the video service Go90, which failed, and took a $4.6 billion impairment charge in 2018.
Verizon Media used the data from its digital media platforms to power ad tech assets like Adap.TV and Brightroll.
Ad tech companies have been proving their value lately, either through public offerings like Viant and DoubleVerify or by being acquired, like SpotX. Private equity has also been pouring money into the ad tech space.
Last week Verizon Media announced a deal to work to exclusively use Vizio’s data to target ad campaigns in the booming connected TV market. Verizon provides a supply-side platform for media companies looking to monetize their CTV assets.
“We are thrilled to help unlock the tremendous potential of Yahoo and its unparalleled collection of brands,” said Reed Rayman, Private Equity Partner at Apollo. “We have enormous respect and admiration for the great work and progress that the entire organization has made over the last several years, and we look forward to working with Guru, his talented team, and our partners at Verizon to accelerate Yahoo’s growth in its next chapter.”
Also Read: Verizon, Innovid, BrightLine Join for Interactive CTV Ads
Verizon Media reported strong, diversified year-over-year revenue growth the past two quarters, driven by innovative ad offerings, consumer ecommerce, subscriptions, betting and strategic partnerships, Verizon said.
“We are excited to be joining forces with Apollo,” said Gowrappan. “The past two quarters of double-digit growth have demonstrated our ability to transform our media ecosystem. With Apollo’s sector expertise and strategic insight, Yahoo will be well positioned to capitalize on market opportunities, media and transaction experience and continue to grow our full stack digital advertising platform. This transition will help to accelerate our growth for the long- term success of the company.”
Verizon Media will be known as Yahoo when the transaction closes and Verizon will retain a 10% stake in the company, which will be run by current CEO Guru Gowrappan.
Apollo Global, which manages billions in assets, is already in the media business having bought Cox Media Group.
Verizon built its media business by acquiring companies like AOL and Yahoo and using their data to power ad tech assets like Adap.TV and Brightroll.
Ad tech companies have been proving their value lately, either through public offerings like Viant and DoubleVerify or by being acquired, like SpotX. Private equity has also been pouring money into the ad tech space.
Last week Verizon Media announced a deal to work to exclusively use Vizio’s data to target ad campaigns in the booming connected TV market. Verizon provides a supply-side platform for media companies looking to monetize their CTV assets.
“We are thrilled to help unlock the tremendous potential of Yahoo and its unparalleled collection of brands,” said Reed Rayman, Private Equity Partner at Apollo. “We have enormous respect and admiration for the great work and progress that the entire organization has made over the last several years, and we look forward to working with Guru, his talented team, and our partners at Verizon to accelerate Yahoo’s growth in its next chapter.”
Also Read: Verizon, Innovid, BrightLine Join for Interactive CTV Ads
Verizon Media reported strong, diversified year-over-year revenue growth the past two quarters, driven by innovative ad offerings, consumer ecommerce, subscriptions, betting and strategic partnerships, Verizon said.
“We are excited to be joining forces with Apollo,” said Gowrappan. “The past two quarters of double-digit growth have demonstrated our ability to transform our media ecosystem. With Apollo’s sector expertise and strategic insight, Yahoo will be well positioned to capitalize on market opportunities, media and transaction experience and continue to grow our full stack digital advertising platform. This transition will help to accelerate our growth for the long- term success of the company.”
