The Yahoo logo is displayed outside of offices in Santa Clara, Calif., in this Monday, April 18, 2011, file photo. Verizon is selling the segment of its business that includes Yahoo and AOL to private equity firm Apollo Global Management in a $5 billion deal. Verizon said Monday, May 3, 2021, that it will keep a 10% stake in the new company, which will be called Yahoo. (AP Photo/Paul Sakuma, File)
The AOL logo is shown on a wall of the company's New York office, in this Monday, May 12, 2008, file photo. Verizon is selling the segment of its business that includes Yahoo and AOL to private equity firm Apollo Global Management in a $5 billion deal. Verizon said Monday, May 3, 2021, that it will keep a 10% stake in the new company, which will be called Yahoo. (AP Photo/Mark Lennihan, File)
In this June 12, 2012 file photo, the Verizon logo is seen at Verizon store in Mountain View, Calif. Verizon is selling the segment of its business that includes Yahoo and AOL to private equity firm Apollo Global Management in a $5 billion deal.
Verizon said Monday, May 3, 2021, that it will keep a 10% stake in the new company, which will be called Yahoo. (AP Photo/Paul Sakuma, File)
AOL and Yahoo are being sold again, this time to a private equity firm.
Verizon will sell Verizon Media, which consists of the pioneering tech platforms, to Apollo Global Management in a $5 billion deal.
Verizon said Monday that it will keep a 10% stake in the new company, which will be called Yahoo.
Yahoo at the end of the last century was the face of the internet, preceding the behemoth tech platforms to follow, such as Google and Facebook.
And AOL was the portal, bringing almost everyone who logged on during the internet's earliest days.
Verizon had hoped to ride the acquisition of AOL to a quick entry into the mobile market, spending more than $4 billion on the company in 2015. The plan was to use the advertising platform pioneered by AOL to sell digital advertising. Two years later, it spent even more to acquire Yahoo and combined the two.
However the speed at which Google and Facebook have grown dashed those hopes and it became clear very quickly that it was unlikely to reach Verizon's highest aspirations for the two.
The year after buying Yahoo, Verizon wrote down the value of the combined operation, called “Oath,” by more than the $4.5 billion it had spent on Yahoo.
As part of the deal announced Monday, Verizon will receive $4.25 billion in cash, preferred interests of $750 million and the minority stake. The transaction includes the assets of Verizon Media, including its brands and businesses such as Yahoo and AOL.
The deal is expected to close in the second half of the year.
Shares of Verizon Communications Inc., based in New York, rose slightly before the opening bell Monday.
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7 Stocks to Buy For the Gig EconomyBefore the global pandemic, it was referred to as a side hustle—a way for some individuals to make a little extra money. However, as the pandemic has changed the nature of how we work, and as consumers how we spend, the gig economy has become an essential way of life for many workers.
There is much that’s not known about the long-term effects of the pandemic. But if there’s one lesson we learn from history, it’s that there will be ripple effects. We believe that society will get back to something resembling normal. However, what that normal looks like may be different.
Americans were becoming less social since before the pandemic. Now consumers have begun to realize there truly is no reason to leave their house to shop for anything. And while many crave physical connection during these times, there will be many that have changed their purchasing habits for good.
Other elements of the gig economy, such as ride-hailing and home rentals, were devastated due to the pandemic. Those businesses are likely to come back.
And that’s why companies that have created the gig economy aren’t going away anytime soon. In this special report, we’ll highlight several stocks that investors should consider as the gig economy moves forward.
View the "7 Stocks to Buy For the Gig Economy".
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