NATIONAL NEWS

Internet Trailblazers Yahoo And AOL Sold, Again, For $5B

May 3, 2021, 7:54 AM | Updated: 8:02 am
FILE PHOTO (Photo by Justin Sullivan/Getty Images)...
FILE PHOTO (Photo by Justin Sullivan/Getty Images)
(Photo by Justin Sullivan/Getty Images)

(AP) – 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.

Financial firms have played an increasingly prominent role in traditional media as well in recent years, buying up newspaper chains and slashing costs.

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.

KSL 5 TV Live

Top Stories

National News

Patrick Giblin in an undated arrest photo. He portrayed himself to women as a wealthy romantic look...
Faith Karimi, CNN

A fake Romeo charmed over 100 women, then scammed them

Patrick Giblin was like the American version of the "Tinder Swindler" -- but without the private jets.
14 hours ago
Oil prices jump 4% after the Keystone Pipeline was shut down following a leak. Pictured is the pipe...
Matt Egan, CNN Business

Keystone Pipeline shuts down after oil leak, halting flow of 600K barrels a day

The Keystone Pipeline has been shut down following a leak discovered near the border of Kansas and Nebraska.
14 hours ago
WNBA star Brittney Griner is back on U.S. soil. (CNN)...
Lekan Oyekanmi and Eric Tucker, Associated Press

Brittney Griner back home in US after Russian prisoner swap

Brittney Griner has returned to the United States, nearly 10 months after the basketball star’s detention in Russia made her the most high-profile American jailed abroad and set off a political firestorm.
14 hours ago
House Speaker Nancy Pelosi (D-CA) participates in a bill enrollment ceremony alongside Senate Major...
MARK SHERMAN Associated Press

AP 2015: Supreme Court gives same-sex marriage rights

On June 26, 2015, the U.S. Supreme Court ruled that same-sex couples had the right to marry. The narrow, 5-4, decision did away with same-sex marriage bans in 14 states.
2 days ago
...
MICHAEL RUBINKAM, Associated Press

Philly’s slain ‘Boy in Box’: 66 years later we know his name

Nearly 66 years after the battered body of a young boy was found stuffed inside a cardboard box, Philadelphia police have revealed the identity of the victim in the city’s most notorious cold case.
2 days ago
FILE PHOTO (Joseph Pallen/University of Idaho)...
REBECCA BOONE Associated Press

University of Idaho settles students’ free speech lawsuit

The University of Idaho will pay $90,000 to settle a lawsuit from members of a Christian law students' organization who claimed their freedom of speech was violated when the school issued no-contact orders against them.
2 days ago

Sponsored Articles

notebook with password notes highlighted...
PC Laptops

How to Create Strong Passwords You Can Actually Remember

Learn how you can create strong passwords that are actually easy to remember! In a short time you can create new ones in seconds.
house with for rent sign posted...
Chase Harrington, president and COO of Entrata

Top 5 reasons you may want to consider apartment life over owning a home

There are many benefits of renting that can be overshadowed by the allure of buying a home. Here are five reasons why renting might be right for you.
Festive kitchen in Christmas decorations. Christmas dining room....
Lighting Design

6 Holiday Decor Trends to Try in 2022

We've rounded out the top 6 holiday decor trends for 2022 so you can be ahead of the game before you start shopping. 
Happy diverse college or university students are having fun on their graduation day...
BYU MBA at the Marriott School of Business

How to choose what MBA program is right for you: Take this quiz before you apply!

Wondering what MBA program is right for you? Take this quiz before you apply to see if it will help you meet your goals.
Diverse Group of Energetic Professionals Team Meeting in Modern Office: Brainstorming IT Programmer...
Les Olson

Don’t let a ransomware attack get you down | Protect your workplace today with cyber insurance

Business owners and operators should be on guard to protect their workplace. Cyber insurance can protect you from online attacks.
Hand turning a thermostat knob to increase savings by decreasing energy consumption. Composite imag...
Lighting Design

5 Lighting Tips to Save Energy and Money in Your Home

Advances in lighting technology make it easier to use smart features to cut costs. Read for tips to save energy by using different lighting strategies in your home.
Internet Trailblazers Yahoo And AOL Sold, Again, For $5B