Verizon Communications Inc. is looking to unload its digital media assets which were written down in 2018, the WSJ reported.
- Assets possibly up for sale include Yahoo! and AOL which were acquired for over $9 billion in total.
- The two entities were reorganized into “Oath” in 2017, led by then AOL Chief Executive Armstrong. The combined entity intended to compete with Google and Facebook.
- The digital media businesses fell short of reaching its target annual revenue of $10 billion in 2020. Its value was written down to $4.5 billion in 2018.
- The sale includes private-equity firm Apollo Global Management for possibly $4 billion to $5 billion, but other details were not immediately available.
- The assets up for sale also include Yahoo Finance and Yahoo Mail, along with news sites TechCrunch and Engadget. Its revenues fell 5.6% to $7 billion in 2020 amid the COVID-19 pandemic.
- Verizon earmarked $53 billion to secure spectrum licenses to support its 5G wireless network. Capital spending on network equipment could reach up to $21.5 billion.
VZ: NYSE is up 0.85%, while APO:NYSE is up 0.11%.