Verizon’s long-awaited sale of its media business is now finally in progress – through a deal announced earlier today, by private equity firm Apollo, for Yahoo, AOL and several different Internet brands and services. 5 billion. Operation (including us, ClearTips) – The next very likely question is, what comes next?
Verizon CEO Hans Westberg tasted it in the coming years: commerce, materials and betting.
In an internal memo to employees, Westburg said that Apollo’s “powerful vision” would not be played only on revenue-generating businesses that have grown as a part of Verizon Media, but taking advantage that Apollo Has a portfolio of working with other assets, including Rackspace and Charter Communications in the TMT sector as well as a wide range of retail, financial services, industrial and manufacturing, and a ton of other companies.
It may involve more advertising or sales customers – Claire’s, the accessories chain, Apollo Mix also has – or something else entirely.
“What makes Apollo’s offering so attractive, is that it involves leveraging the entire Verizon media ecosystem of edtech, relationships, data, insights, targeting, and reach,” Westburg said.
You can read a big analysis of the deal here. The full memo is below.
A moment ago we made an important announcement. We have entered into an agreement with Apollo, a leading global investment manager, to acquire Verizon Media. While this is a bitwhite moment, Verizon will retain a minority stake in the new company, which will be called Yahoo at the closing of the deal.
This is a big step for our media team. A team that made an incredible change in these 2.5 years – remaining closed for the final 2 quarters of double-digit growth. This step will help accelerate that growth.
After a strategic review, Guru and I discussed, and believed, that the full value of the media’s offerings had not yet been unlocked. Apollo has a powerful vision that includes aggressively pursuing development sectors in commerce, materials and betting. One is that they also have synergies with many traditional brick and mortar companies in their portfolio that can benefit from the media’s e-commerce platform. What appealed to the Apollo offering is that it involves leveraging the entire Verizon media ecosystem of edtech, relationships, data, insights, targeting, and reach.
I believe this step is right for all our stakeholders including media employees. We aim to build networks that advance the world, and this will help us better focus our energy and resources on our core competencies.
I could not be more proud of the work that the Guru, his leadership team and the entire media team of “builders” have done to achieve this milestone. In fact, it is important to note that Guru will continue in his current leadership role.
As a reminder, as with any deal like this, the transition will take time to complete. It is important that we continue to focus on the work going on simultaneously in all our business units and deliver the customer experience we are known for.
This is another chapter in an iconic and store brand. I am excited about where they will take the new Yahoo.