Verizon once thought that buying Yahoo and AOL was the future. But that turned out to be fallacy as that purchase didn’t exactly go to plan. So as a result, Verizon is selling Yahoo and AOL for $5 billion to a private equity firm named Apollo Global Management:
The sale will see online media brands under the former Yahoo and AOL umbrellas like TechCrunch, Yahoo Finance and Engadget go to Apollo. Verizon bought AOL for $4.4 billion in 2015, and it bought Yahoo for $4.5 billion in 2017.
There has been increasing evidence recently that Verizon wanted to sell off its media properties and instead focus on its wireless networks and other internet provider businesses. Last year, Verizon sold HuffPost to BuzzFeed. It also recently sold off or shut down other media properties like Tumblr and Yahoo Answers.
Clearly Verizon is going to focus on it’s core business and acknowledging that it couldn’t compete with Google and Facebook. Which is interesting as their chief competitors are doubling down on media. Thus you have to assume that Verizon failed miserably. It will be interesting to see what happens in the days to come when it comes to this deal.