Posts tagged with "Apollo Global Management"

Verizon to sell Yahoo, AOL to Apollo for $5 billion

May 4, 2021

Apollo Global Management has agreed to pay about $5 billion to acquire Yahoo and AOL from Verizon Communications, as the wireless company exits its ill-fated foray into the media business, The Wall Street Journal reports.

The private-equity firm, based in New York City, is paying $4.25 billion in cash for a 90% share of the media assets. Verizon, also headquartered in the Big Apple,  will keep a 10% stake and $750 million of additional preferred stock in the new company, called Yahoo, that will be formed to operate the business.

The Wall Street Journal earlier had reported the potential sale of Verizon’s media assets to ApolloVerizon Media—which mostly struggled to grow against Alphabet’s Google as well as Facebook, generated $7 billion in revenue last year.

zon’s positioning of the media business as a complement to its core mobile business—aimed at helping it to add subscribers and reduce the number of people who quit—held it back from pursuing some opportunities to maximize the value of each asset, executives at the private-equity firm said, according to the Journal.

For example, Yahoo has been a popular platform for sports betting, but isn’t formally licensed to host gambling. Apollo, however, is licensed in more than 200 jurisdictions for gambling.

Apollo’s strategy for the business revolves around getting more revenue from each of its 900 million active monthly users. 

“This is a typical Apollo deal in that these are very iconic, industry leading, businesses, but they need a little tender loving care,” David Sambur, the firm’s co-head of private equity, said in an interview.

Verizon Media’s revenue has increased more than 10% over the past two quarters, helped by rebounding demand from advertisers looking to tap an online shopping boom during the coronavirus pandemic. Digital-ad sales are expected to accelerate in the coming months, as consumers start spending more cash on travel and other activities.

Other suitors previously showed interest in buying off certain pieces of the media

For Apollo, buying the entire portfolio means needing to have a view on how to run each of the diverse properties. The firm specializes in doing such complex deals and has focused on boosting growth at other internet companies it owns, including online-photo-services company Shutterfly.

Verizon Chief Executive Hans Vestberg said in an interview that the company’s long-term strategy to provide “network-as-a-service” to customers over fiber-optic and cellular connections made the media business a better fit under new owners. He portrayed the sale as an outcome years in the making.

Research contact: @WSJ

More than 170 top U.S. business leaders urge Congress to certify Biden’s Electoral College win

January 6, 2021

More than 170 American business leaders signed a letter on January 4 urging Congress to certify the result of the presidential election without delay, Business Insider reports.

Signatories included Goldman Sachs Chairman and CEO David Solomon; Microsoft President Brad Smith;  BlackRock CEO Laurence Fink; Pfizer CEO Albert Bourla; James Zelter, a co-president of Apollo Global Management; and Lyft CEO Logan Green.

Congress is scheduled to certify the result on Wednesday, January 6—thereby confirming President-elect Joe Biden’s Electoral College victory. President Donald Trump has so far refused to acknowledge that he lost the election.

The Partnership for New York City, a nonprofit organization and major business advocacy group, published the letter on Monday. “This presidential election has been decided and it is time for the country to move forward,” the letter said. “President-elect Joe Biden and Vice President-elect Kamala Harris have won the Electoral College and the courts have rejected challenges to the electoral process.”

According to Business Insider, the leaders added that “attempts to thwart or delay this process run counter to the essential tenets of our democracy.”

Biden and Harris deserve respect and bipartisan support as America faces “the worst health and economic crises in modern history,” they said.

The letter said that Congress should certify the electoral vote and that “there should be no further delay in the orderly transfer of power.”

But at least 140 Republican House members are planning to vote against certification, two representatives told CNN last week.

Trump and other Republicans have tried to overturn the result of the election, pushing false claims of voter fraud.

Over the weekend, Trump pleaded with Georgia’s secretary of state in an hourlong phone call to “find” additional votes to overturn Biden’s victory in the state.

Biden won the 2020 presidential election with 306 electoral votes, flipping five states that voted for Trump in 2016.

Research contact: @businessinsider