With Verizon’s long-awaited sale of its media business finally underway – through a deal, announced earlier today, with private equity firm Apollo paying $ 5 billion for Yahoo, AOL and the many brands and internet services that are part of the operation (including us, TechCrunch) – the next very likely question is, what’s next?
Hans Vestberg, CEO of Verizon, gave a taste of what’s to come: commerce, content and betting.
In an internal memo to employees, Vestberg said that Apollo’s “powerful vision” will not just be to play on the income-generating businesses that have been developed under Verizon Media, but to leverage them to work. along with other Apollo assets. portfolio, which includes a fairly wide range of companies in the TMT sector such as Rackspace and Charter Communications, as well as a ton of other types of companies in retail, financial services, industry and manufacturing, etc.
It could involve more advertising or business customers – Claire’s, the accessories chain, is also part of the Apollo mix – or something else.
“What made Apollo’s offering so compelling is that it includes leveraging the entire Verizon Media ecosystem of ad technology, affiliate relationships, data, information. , targeting and reach, ”said Vestberg.
You can read a more detailed analysis of the transaction here. The full memo is below.
A few moments ago we made an important announcement. We have entered into an agreement with a leading global investment manager, Apollo, to acquire Verizon Media. While this is a bittersweet moment, Verizon will maintain a minority stake in the new company, which upon closing will be called Yahoo.
This is a big step forward for our Media team. A team that has achieved an incredible turnaround over the past 2.5 years – capped off by the last 2 quarters of double-digit growth. This decision will help accelerate this growth.
After a strategic review, Guru and I discussed and felt that the full value of Media’s offerings had yet to be unlocked. Apollo has a powerful vision which includes the aggressive pursuit of growth areas in commerce, content and betting. A program that also has synergies with many traditional companies in their portfolio that can benefit from Media’s e-commerce platform. What made Apollo’s offering so attractive is that it includes leveraging the entire Verizon Media ecosystem of ad technology, affiliate relationships, data, information, targeting and reach.
I think this decision is suitable for all of our stakeholders, including media workers. Our goal is to create the networks that move the world forward, which will help us better focus all of our energy and resources on our core competencies.
I couldn’t be more proud of the work Guru, his management team and the entire “Builders” media team did to get this here. In fact, it is important to note that Guru will continue in his current leadership role.
As a reminder, as with any chord like this, the transition will take time. It is important that we continue to stay focused on our ongoing work together, across all of our business units, and that we continue to deliver the best customer experience that we are known for.
This is just one more chapter in an iconic and legendary brand. I am excited to know where they will lead the new Yahoo.