We can go from giant to forgotten status in twenty years, valued at $ 125 billion for a buyback price of $ 5 billion. Yahoo has just demonstrated this to us with its new acquisition by Apollo Global Management in agreement with the American operator Verizon, which has owned the web services company for only four years.
Verizon takes the losses, Yahoo plunges
Yahoo has just been bought on top of AOL for less than $ 5 billion. That’s only half of what Operation Verizon put on the table in 2015 and 2017, and a far cry from the company’s valuation in the 2000s when its name sounded like a key player on the internet and web access.
Apollo Global Management is a US private equity fund for which Verizon received US $ 4.25 billion in cash and US $ 750 million in preferred paper. With the abandonment of Yahoo and AOL, almost the entire media branch sees the American operator leaving, although it will still hold 10% of the capital in the new entity between AOL and Yahoo, which will be renamed itself. “Yahoo”.
At Verizon, this separation of the media entity also means the change of ownership of three influential websites: TechCrunch and Engadget for Tech and Yahoo Sports. However, Verizon has already gotten us used to parting ways with several companies that it owned, such as Tumblr in 2019, which suffered an even greater devaluation (Tumblr was then named for 1 , Bought $ 1 billion) resold for only $ 3 million).
For its part, AOL weighed even more than Yahoo, peaking at more than $ 200 billion in the 1990s. The company then dominated e-mail, internet connection, but also and especially online news and cat services. After Verizon was quickly overtaken by competition, it bought it back in 2015 for a modest bill of $ 4.4 billion.
Verizon has never been a winner in these acquisitions, according to AFP. In 2018, his media industry cost him a whopping $ 4.6 billion, which brought his red numbers to $ 4.9 billion. Less than two years after adopting 5G and making massive investments for its operators, Verizon could no longer continue with Yahoo and AOL.
“Thanks to Apollo’s industry expertise and strategic vision, Yahoo is well positioned to capitalize on market opportunities,” Verizon confirmed in a press release on Monday, May 3rd.