What does Verizon have to do with Yahoo

Yahoo and AOL, formerly known as Verizon Media, have officially been acquired by their new owners and renamed as simply “Yahoo.”

Verizon announced it was selling the properties to Apollo Global Management in May in a deal said to be worth $5 billion, around half of the nearly $9 billion the telecom giant originally.

A string of poor business choices has ultimately led to the company’s demise, and recently Verizon agreed to purchase Yahoo’s core business for $4.83 billion. Yahoo presents an interesting business case for online MBA students, who can learn from both Yahoo’s successes and mistakes.

How much did Verizon sell Yahoo for?

$5 billion

Private equity firm Apollo Global Management this morning announced that it has completed its acquisition of Yahoo (formerly known as Verizon Media Group, itself formerly known as Oath) from Verizon. The deal is worth $5 billion, with $4.25 billion in cash, plus preferred interests of $750 million.

After its revenues began shrinking following its peak in 2007, Yahoo was acquired by Verizon (VZ) for $4.5 billion in 2017, where it now operates alongside brands like HuffPost and Tumblr under the umbrella once called “Oath” — recently retooled as “Verizon Media.” Confusingly, Oath and Verizon Media are both currently

What companies does Yahoo own?

Acquisitions
Date Company Derived products
June 28, 2001 LAUNCH Media Yahoo! Music
February 12, 2002 Hotjobs.com Yahoo! HotJobs
December 23, 2002 Inktomi Corporation Yahoo! Search
June 14, 2003 Overture Services, Inc. Yahoo! Search Marketing

Meanwhile, Yahoo will bring in hundreds of millions more viewers from sites like News, Sports, and Finance to complement Verizon’s popular properties like TechCrunch and Huffington Post. In the US, comScore puts Yahoo at No. 3 among digital properties.

“Yahoo and AOL popularized the Internet, email, search and real-time media,” Yahoo CEO Marissa Mayer said in the joint announcement of the deal. “It’s poetic to be joining forces with AOL and Verizon as we enter our next chapter focused on achieving scale on mobile.”

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Of course, even with the AOL and Yahoo assets, Verizon has a long way to go (paywall) to catch up with the online advertising leaders.

Verizon with AOL currently holds a mere 1.8% of the $69 billion digital ad market in the US. Yahoo has about 3.4%. Google and Facebook together claim about half of it. Looked at another way, though, there’s plenty of market share to steal, which can’t be said of its traditional business.