We can go from giant to forgotten in twenty years. from a valuation of $ 125 billion to 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 just got bought in addition to AOLfor an amount 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 the name sounded like a central 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, the American operator sees almost its entire media industry abandoned, although it will still hold 10% of the capital in the US new entity formed between AOL and Yahoo, which will be renamed “Yahoo”.
At Verizon, this separation of the media entity also signals the change of ownership of three influential locations: TechCrunch and Engadget for tech and Yahoo Sports. But Verizon has grown accustomed to parting with several companies that it owned over the past several years. like Tumblr in 2019Tumblr was bought for $ 1.1 billion, only to be sold for just $ 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 its balance sheet is in the red at $ 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 Industry expertise and Apollo’s strategic vision: Yahoo will be well positioned to seize market opportunities. “, Verizon confirmed in a press release on Monday, May 3rd.