Verizon Completes Media Business Sale to Apollo

The sale of Verizon’s media division, long expected, is now underway. Apollo, a private equity firm, has announced a $5 billion acquisition of Yahoo, AOL, and the associated internet brands and services – a transaction that includes TechCrunch.

Future Focus for Verizon

Hans Vestberg, Verizon’s CEO, has indicated the company’s future strategic direction will center around three key areas: commerce, content, and betting.

Vestberg communicated to employees that Apollo’s strategic approach will focus on expanding the revenue streams of the businesses previously operating under Verizon Media.

Synergies with Apollo’s Portfolio

Apollo intends to integrate these assets with its existing portfolio, which boasts a diverse range of companies within the Technology, Media, and Telecommunications (TMT) sector.

Companies like Rackspace and Charter Communications are part of Apollo’s holdings, alongside businesses in retail, financial services, industrial manufacturing, and other sectors.

Potential for Expanded Reach

This acquisition could lead to an increase in advertising and sales clients. Claire’s, the accessories retailer, is also within Apollo’s investment scope.

Verizon Media’s ecosystem – encompassing adtech, affiliate relationships, data, insights, targeting, and reach – was a significant factor in the deal’s attractiveness.

A more detailed analysis of the transaction can be found here.

The complete internal memo from Mr. Vestberg is provided below.