Apollo is close to buying Verizon Media assets, including Yahoo

U.S. private equity group Apollo Global Management is close to acquiring Yahoo and Verizon Communications’ other media assets, according to people familiar with the situation, as the telecom group shifts its focus to its core network business and the rollout of 5G wireless technology.

The public added that Apollo would pay between ৪ 4 billion and b জন্য 5 billion for the assets, which could be announced soon on Monday, people added.

That would be a dramatic change for the U.S. wireless operator, which spent nearly $ 9 billion between 2015 and 2017 to acquire Yahoo and AOL as anchor assets for the online media division. Became known as Oth.

The strategy reflects a mentality that was once widely shared among the world’s largest telecommunications companies, who wanted to benefit from the explosion of digital media use by becoming content owners, not just network operators or “dumb pipes.”

Netflix and Amazon have created huge online media businesses to meet customer demand for on-demand video, while media companies like Disney and ViacomCBS have adapted to their business transformation habits. Building streaming platforms Their own.

But telecom companies struggled to establish themselves as the creators and owners of their cellular networks and the programming delivered to them.

Verizon’s fight is not unique. Its biggest competitor is AT&T Acquired Time Warner, Owner of CNN, HBO and Warner Bros., for নেট 85.4bn nearly five years ago to build a streaming business capable of adopting Netflix.

The strategy has so far enjoyed mixed success. AT&T charged পে 15.5 billion on its pay-TV business in January, as customers switched from cable and satellite to streaming platforms.

Verizon also hoped to create a content and marketing platform that would allow it to compete with Google and Facebook. However, it has failed to gain significant market share from its competitors and has forced it to reconsider its broader strategy, says a person with direct knowledge of the subject.

Media resource sales further underscore Verizon’s decision to double its 5G Internet service expansion, which covered 230 million people in more than 2,700 cities as of December last year.

Verizon took a 4.6 billion writedown on its media businesses in 2018 after brands “experienced competitive and increased market pressure”. . . As a result, revenue and earnings are lower than expected, ”the company said in a filing.

“These pressures were expected to continue and this has reduced the market position for our competitors in the digital advertising business,” Filing added.

Verizon has also achieved “less than expected benefits from its integration … Yahoo and AOL,” it said.

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