Yahoo and AOL are bought off from Verizon by Apollo with a $5 Billion deal

Yahoo and AOL were once the face of internet which we use today. Before Facebook and Google dominated the internet world, Yahoo was the place for all web services and AOL was the web portal that brought everyone together during the earliest times of internet. The two tech giants were bought by Verizon, in 2015. Verizon is an American wireless network operator, and this network previously worked as a separate division of Verizon Communications under the name of Verizon Wireless and was founded in 2000. Verizon bought Yahoo and AOL for $9 Billion, and now it has been reported that the company has apparently sold Yahoo and AOL to a private firm which goes by the name Apollo Global Management for $5 Billion.

Verizon bought Yahoo and AOL with the aim of starting a digital media business that can beat Google and Facebook, but Yahoo and AOL were already having a downfall and with more increase in the success of Facebook and Google, Verizon could not live up to its goals. Verizon’s media business head Guru Gowrappan said that this new evolution of Yahoo is the most exciting one yet and the company is thrilled to see how Apollo will allow space for the business to grow in ways which Verizon couldn’t, as the company is planning onto spend more money than it already has to expand its next generation 5G wireless network. Verizon will still have a 10 percent stake in the newly formed media group.

Yahoo Finance, Yahoo Mail and the well-known tech blogs Engadget and TechCrunch are all included in this sale. Apollo who has invested in other media and technology companies like Shutterfly says that they are sure that with the resources which Apollo will be able to provide, Yahoo will flourish and the overall growth in digital advertising will boost Yahoo’s growth too

The Private Equity Partner at Apollo has said that they are thrilled to help Yahoo unlock its yet unexplored potential and that they have a huge amount of respect and admiration for the work and progress the company has done over it in the last few years. With Guru and the whole team the entire Apollo staff is excited to work to help Yahoo grow in new ways than imagined.

This isn’t the first time that the company Verizon has sold off something in a lesser deal than it bought it for. The company also sold off the social networking site Tumblr and the blog Huffpost, both of which were bought off by Buzzfeed later. Buzzfeed is an American media company that focuses on digital media brining in news and entertainment.

Credit: Bloomberg via Getty Images

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