Apollo Completes its $5B Acquisition of Yahoo

Apollo Global Management, Inc. (together with its consolidated subsidiaries, “Apollo”) today announced that funds managed by its affiliates (the “Apollo Funds”) have completed the acquisition of Yahoo – formerly Verizon Media – one of the world’s premier global technology and media companies. With the close of the transaction, Yahoo will now operate as a standalone company under Apollo Funds. Verizon has retained a 10% stake in Yahoo. 

It’s not clear how a new owner will steer that large ship differently, but one strategy — standard practice for PE firms — could involve Apollo selling off parts of the business or rationalizing it in other ways. However, for its part, Apollo has promised to continue investing in the newly acquired proprieties, and it has secured all jobs at the time of handover for at least an initial period. The bigger firm of Apollo has a massive set of TMT holdings so it will be interesting to see how and if it leverages that, too.

“We look forward to partnering with Yahoo’s talented employee base to build on the company’s strong momentum and position the new Yahoo for long-term success as a standalone consumer internet and digital media leader,” said Reed Rayman, Partner at Apollo. “We couldn’t be more excited about this next chapter for Yahoo as we look to invest in growth across the business, including accelerating its customer-first offerings and commerce capabilities, expanding its reach and enhancing the daily user experience.”

“This is a new era for Yahoo,” said Guru Gowrappan, CEO, Yahoo. “The close of the deal heralds an exciting time of renewed opportunity for us as a standalone entity. We anticipate that the coming months and years will bring fresh growth and innovation for Yahoo as a business and a brand, and we look forward to creating that future with our new partners.”

For nearly 30 years, Yahoo has been the world’s premier global technology and media company, with nearly 900 million monthly active users worldwide, making it the third-largest property on the internet. Comprised of iconic consumer news brands and products, plus leading advertising and media platform businesses, Apollo’s investment will enable new growth for Yahoo, benefiting consumers, advertisers, publishing partners, and employees.