Apollo Global Management - which has investments in companies ranging from Smart & Final to Shutterfly, Redbox to Cox Media Group - yesterday spent $5 billion to acquire Yahoo and AOL from Verizon Communications, which is betting out of the media business.
Verizon will maintain a 10 percent stake in the business.
- KC's View:
This deal reflects a reality of modern competition - if you don't stay current, don't pivot when necessary, and don't make savvy investments in the business, then it is almost impossible to stay relevant and resonant.
Think about it. Both AOL and Yahoo were pioneers of the internet age. For many of us, AOL was our original gateway to the internet, helping us understand its structure and possibilities and allowing us to learn to crawl before walking and running.
And yet … in 2015, Verizon bought AOL for $4.4 billion. In 2016, it bought Yahoo for $4.83 billion. And now, it is selling them both off for a sum that is roughly half the original investments.