signed a deal on Monday to sell its media group, known as Verizon Media, to private equity firm Apollo Global Management for $5 billion. Verizon Media includes venerable internet brands such as
, as well as ad tech and media platform businesses.
Verizon will retain a 10% stake in the company, which will be called Yahoo and will be led by Verizon Media CEO Guru Gowrappan.
"With Apollo's sector expertise and strategic insight, Yahoo will be well positioned to capitalize on market opportunities, media and transaction experience and continue to grow our full stack digital advertising platform," Gowrappan said in a press release. "This transition will help to accelerate our growth for the long- term success of the company."
Verizon acquired AOL in 2015 and Yahoo in 2016, paying about $9 billion for the pair. In 2017, Verizon merged AOL and Yahoo into its business, creating the media division dubbed Oath that was later rebranded to Verizon Media. The company took a $4.6 billion write-down on the merger in 2018.
Last week, The Wall Street Journal reported that Verizon was looking to sell off the brands and to exit the digital media business. Verizon Media sold the Huffington Post to BuzzFeed in November 2020.
The deal with Apollo is expected to close in the second half of 2021.