Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

VERIZON COMMUNICATIONS

(VZ)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Verizon Communications : sells internet trailblazers Yahoo and AOL for $5B

05/03/2021 | 03:33pm EDT

AOL and Yahoo are being sold again, this time to a private equity firm.

Wireless company Verizon will sell Verizon Media, which consists of the once-pioneering tech platforms, to Apollo Global Management in a $5 billion deal.

Verizon said Monday that it will keep a 10% stake in the new company, which will be called Yahoo.

Yahoo at the end of the last century was the face of the internet, preceding the behemoth tech platforms to follow, such as Google and Facebook. And AOL was the portal, bringing almost everyone who logged on during the internet's earliest days.

Verizon spent about $9 billion buying AOL and Yahoo over two years starting in 2015, hoping to jump-start a digital media business that would compete with Google and Facebook. It didn't work — those brands were already fading even then — as Google and Facebook and, increasingly, Amazon dominate the U.S. digital ad market. The year after buying Yahoo, Verizon wrote down the value of the combined operation, called “Oath,” by roughly the value of the $4.5 billion it had spent on Yahoo.

Verizon has been shedding media assets as it refocuses on wireless, spending billions on licensing the airwaves needed for the next generation of faster mobile service, called 5G. It sold blogging site Tumblr in 2019 and HuffPost to BuzzFeed late last year. The digital media sector in recent years has been consolidating as companies seek profitability.

The properties Verizon is selling include Yahoo Finance, Yahoo Mail and the tech blogs Engadget and TechCrunch.

Despite its difficulty competing with tech giants for ad dollars, leading to cost cuts and layoffs, Verizon Media’s revenue rose 10% in the most recent quarter from the year before, to $1.9 billion. The division still has nearly 900 million monthly users, and generated $7 billion in revenue in 2020, according to Verizon and Apollo.

Apollo says they are “big believers in the growth prospects of Yahoo” and expects that overall growth in digital advertising will boost Yahoo too, said Apollo senior partner David Sambur in a prepared statement. Apollo has invested in other media and tech companies like the photo website Shutterfly and TV and radio stations formerly owned by Cox.

Apollo is betting that the data that the Yahoo division collects from its users, who log in to products like email, appeals to advertisers as ad-tracking technology changes, said Forrester analyst Joanna O’Connell.

Financial firms have played an increasingly prominent role in traditional media as well in recent years as the newspaper industry struggles with the decline of print advertising, buying up chains and slashing costs and jobs.

Verizon will receive $4.25 billion in cash, preferred interests of $750 million and the minority stake.

The deal is expected to close in the second half of the year.

Shares of Verizon Communications Inc., based in New York, rose less than 1% Monday.

Copyright 2021 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission., source Associated Press News

Stocks mentioned in the article
ChangeLast1st jan.
FACEBOOK INC 1.49% 373.28 Delayed Quote.36.65%
VERIZON COMMUNICATIONS -0.85% 55.72 Delayed Quote.-4.34%
All news about VERIZON COMMUNICATIONS
09:01aVERIZON COMMUNICATIONS : BlueJeans by Verizon Reimagines Virtual Events to Drive..
AQ
08:44aVERIZON COMMUNICATIONS : Get back to school with tech from Verizon
PU
08:31aVERIZON COMMUNICATIONS : Air National Guard awards Verizon Public Sector $78.8M ..
AQ
08:27aVERIZON COMMUNICATIONS : Management's Discussion and Analysis of Financial Condi..
AQ
07/27VERIZON COMMUNICATIONS : and Samsung complete fully virtualized 5G data session ..
AQ
07/27Verizon and Samsung Complete Fully Virtualized 5G Data Session on C-Band Spec..
CI
07/27Amazon-backed Wiliot raises $200 million in investment led by SoftBank Vision..
RE
07/26Facebook and tech giants to target attacker manifestos, far-right militias in..
RE
07/26Facebook and tech giants to target attacker manifestos, far-right militias in..
RE
07/26VERIZON COMMUNICATIONS : Get back to school with tech from Verizon
AQ
More news
Financials (USD)
Sales 2021 135 B - -
Net income 2021 21 874 M - -
Net Debt 2021 144 B - -
P/E ratio 2021 10,6x
Yield 2021 4,55%
Capitalization 231 B 231 B -
EV / Sales 2021 2,77x
EV / Sales 2022 2,72x
Nbr of Employees 129 300
Free-Float 96,5%
Chart VERIZON COMMUNICATIONS
Duration : Period :
Verizon Communications Technical Analysis Chart | VZ | US92343V1044 | MarketScreener
Technical analysis trends VERIZON COMMUNICATIONS
Short TermMid-TermLong Term
TrendsNeutralNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 30
Last Close Price 55,72 $
Average target price 60,58 $
Spread / Average Target 8,73%
EPS Revisions
Managers and Directors
Hans Erik Vestberg Chairman & Chief Executive Officer
Matthew D. Ellis Chief Financial Officer & Executive Vice President
Kyle J. Malady Chief Technology Officer & Executive VP
Shankar Arumugavelu Global Chief Information Officer
Craig Silliman Chief Administrative & Legal Officer, Executive VP
Sector and Competitors