SoftBank Acquires Yahoo Trademark License for $1.6 Billion

Verizon and Z Holdings Finalize Yahoo Japan Trademark Deal

While New York City celebrated with fireworks, Verizon likely marked a significant financial event at its Midtown headquarters last night.

The telecommunications company, currently the owner of TechCrunch pending Apollo’s acquisition of Verizon Media, revealed an agreement with Z Holdings.

Details of the Agreement

Z Holdings, a division of Japan’s SoftBank Group, will acquire Yahoo brand trademarks and associated technology infrastructure within the Japanese market for approximately $1.6 billion.

Z Holdings manages SoftBank’s Japanese internet businesses, primarily Yahoo Japan.

Yahoo Japan’s web portal is currently the most visited news website in the country.

Royalty Transition

Previously, Yahoo Japan paid Verizon Media (formerly Oath, and before that, AOL + Yahoo) regular royalties for the use of the Yahoo brand and related technologies in Japan.

These ongoing royalty payments will cease, replaced by a single, upfront payment.

Impact on Apollo’s Acquisition

Resolving this agreement was a crucial step in Apollo’s $5 billion buyout of Verizon Media.

The $1.6 billion from Z Holdings will provide immediate capital to Verizon following Apollo’s purchase.

Bloomberg reports that Verizon Media is also seeking $1.5 billion in loans to support the Apollo acquisition, a common practice in private equity buyouts.

Verizon’s Financial Strategy

The Apollo sale of Verizon Media will generate substantial cash for Verizon.

This capital will aid in reducing the debt accumulated from recent investments, including the $52.9 billion spent on C-band spectrum earlier this year.

Continued Collaboration

According to a statement from Z Holdings, the termination of the Yahoo Japan License Agreement will not disrupt the existing business and technology relationship between Yahoo Japan and Verizon Media.

Yahoo Japan will continue to innovate and provide services under the ‘Yahoo! JAPAN’ brand, guided by its mission to “UPDATE JAPAN.”

Further updates and improvements to services in Japan are anticipated.

Updated July 6, 2021: Clarification provided regarding the flow of funds from the deal to Verizon Media, considering the timing of the acquisition’s completion.