Verizon Just Sold AOL and Yahoo for $5 Billion, and the New Company Will Be Known as 'Yahoo' Going Forward

Just shy of five years since buying them, Verizon is selling AOL and Yahoo for $5 billion.

Grow Your Business, Not Your Inbox

Stay informed and join our daily newsletter now!
2 min read
This story originally appeared on Business Insider

After just over five years of ownership, Verizon has sold its ownership stake in Yahoo and AOL for $5 billion, the telecom giant announced on Monday morning.

The new company formed by AOL and Yahoo will be known solely as Yahoo, and the new owner is private equity firm Apollo Global Management.

Related: Yahoo Answers Announces Final Closure, and Users Relive It With Questions, Answers and Memes

Marquee media groups being purchased in the deal include Engadget, TechCrunch, and Yahoo Finance. Other notable products in the sale include AOL's dial-up internet customer base, Yahoo Mail, and the Yahoo portal homepage. 

"We are big believers in the growth prospects of Yahoo," Apollo senior partner and co-head of private equity David Sambur said in an announcement.

Verizon originally purchased AOL back in May 2015 for $4.4 billion, and Yahoo in July 2016 for $4.83 billion — making the sale of both companies for $5 billion about a 50% overall loss. The two companies were temporarily known as "Oath," an umbrella unit within Verizon that included AOL and Yahoo. It was later rebranded as Verizon Media Group.

Verizon separately sold the Huffington Post in late 2020, which it acquired in its purchase of AOL, to Buzzfeed.

The telecoms giant has struggled to turn a profit with AOL and Yahoo, and was forced to write down nearly $5 billion in Oath-related losses in 2018. With the sale, Verizon is officially exiting the media business, though it maintains minority stakes in a variety of media organizations — including a 10% stake in the new version of Yahoo.

Apollo and Verizon expect the deal to close in the second half of this year.

More from Entrepreneur
Our Franchise Advisors will guide you through the entire franchising process, for FREE!
  1. Book a one-on-one session with a Franchise Advisor
  2. Take a survey about your needs & goals
  3. Find your ideal franchise
  4. Learn about that franchise
  5. Meet the franchisor
  6. Receive the best business resources
Make sure you’re covered if an employee gets injured at work by
  • Providing us with basic information about your business
  • Verifying details about your business with one of our specialists
  • Speaking with an agent who is specifically suited to insure your business
Make sure you’re covered for physical injuries or property damage at work by
  • Providing us with basic information about your business
  • Verifying details about your business with one of our specialists
  • Speaking with an agent who is specifically suited to insure your business

Latest on Entrepreneur