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Yahoo and AOL sold, again, for $5B as Verizon exits media business

Posted at 9:36 AM, May 03, 2021
and last updated 2021-05-03 22:36:00-04

AOL and Yahoo, as part of Verizon Media, are being sold to a private equity firm.

The phone company made a deal with Apollo Global Management for $5 billion. Verizon will maintain a 10% stake in the company as part of the deal, according to a release from the company.

The new company will be known as Yahoo when the transaction is completed and continue to be led by CEO Guru Gowrappan.

The $5 billion deal consists of $4.25 billion in cash, preferred interests of $750 million and the minority stake in the new Yahoo.

Verizon Media consists of AOL, Yahoo, and "leading ad tech and media platform businesses."

Verizon bought AOL for about $4.4 billion in 2015 and Yahoo for $4.48 billion in 2017.

The deal is expected to close later this year.