US telecommunications company Verizon said on Monday it agreed to sell its media businesses, including Yahoo and AOL, for $5 billion to asset manager private equity firm Apollo Global Management.
Verizon will get $4.25 billion in cash, preferred interests of $750 million, and retain a 10% stake in the new company which will be known as Yahoo after the transaction is closed. The new firm will continue to be led by Verizon Media CEO Guru Gowrappan, according to the statement.
"The past two quarters of double-digit growth have demonstrated our ability to transform our media ecosystem ... This transition will help to accelerate our growth for the long-term success of the company," Gowrappan said.
Verizon CEO Hans Vestberg said Apollo delivered the strongest vision and strategy for the next phase of Verizon Media that requires full investment and the right resources, adding "I have full confidence that Yahoo will take off in its new home."
David Sambur, senior partner and co-head of Private Equity at Apollo, said his firm has a long track record of investing in technology and media companies.
Verizon had bought AOL for $4.4 billion in 2015 and Yahoo for $4.5 billion in 2017.
With the latest transaction, Verizon aims to focus on its wireless network and internet provider businesses. Last year, it sold HuffPost to BuzzFeed, after closing down other media assets such as Tumblr and Yahoo Answers.