For $4.25 billion, Apollo Global Management Inc acquires 90% of Verizon’s stakes.

Verizon sells the former internet leaders AOL and Yahoo

For $4.25 billion, Apollo Global Management Inc acquires 90% of Verizon's stakes.

For $4.25 billion, Apollo Global Management Inc acquires 90% of Verizon's stakes.

Mergers and acquisitions have kept the momentum going as companies restart their path to change economies. Despite the fact that 2020 was a difficult year due to the pandemic, global tech M&A totaled $634.1 billion.

The $5 billion deal between Verizon Communications Inc.’s media division and Apollo Global Management Inc., in which the latter buys 90% of the stakes for $4.25 in cash. Verizon would hold a 10% stake in Yahoo and AOL, allowing it to divest assets from both companies.

At the end of the year, the deal will be completed. Apollo would benefit from the deal not only in terms of stakes but also in terms of all businesses and a global active userbase of 900 per month. Guru Gowrappan will be in charge of the new venture.

There will be a closure of the deal by this year.  The media brands that were once part of Yahoo and AOL are being given low valuations due to the market downturn.

When acquiring internet behemoths like Yahoo and AOL, Verizon had a fantastic run. It was expected that the leader – AOL will aid in digital ads, and it paid $4 billion for it in 2015, and check listed Yahoo for a $4.5 billion offer. However, more creative and conducive developers emerged in the digital world, such as Google and Facebook, who opened several doors for the target audience to experience the internet on a new level. Verizon was perplexed by this sudden rise in marketing. The deal took place at a time when the business was facing a dearth in the online advertising industry.

The decision makes it clear that Verizon has no desire to compete in the same market with its major competitors. Unlike Verizon, AT&T and Comcast are both betting on online streaming success, despite competing against major names like Netflix, which has 207 million paid subscribers, Disney, which has 100 million, and NBC Universal, which has 33 million.

It seemed amazing at first, with the companies that took the internet by storm in the past with AOL and Yahoo. Despite the fact that many people made risky investments, the companies failed. Despite surviving reforms and reformatting, the businesses lost media properties such as Tumblr, Huffington Post, and Yahoo Answers.

Following the agreement, the media properties must make every effort to increase revenue, visibility, and be lucrative which can be sold for profits.

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