Verizon CEO pays ‘$5 billion’ to Apollo, gives memo to its employees
Verizon to focus on it's other businesses like Rackspace and Charter Communications
Hans Vestberg, the CEO of Verizon came up with a new way of dealing with the private equity firm Apollo, by paying $5 billion for Yahoo, AOL as well as several other of the internet’s well-known brands and the services that are collectively part of the operations.
Finally, media business sales are in progress, as the reports said earlier this morning.
The weeks-long negotiation came to a conclusion today, Verizon announces that it has entered an agreement, selling its media assets to Apollo Global Management for $5 billion.
Thus, Apollo Global Management will be paying Verizon around $4.25 billion in cash, along with preferred interests of $750 million, and Verizon will be keeping it’s10% of the company, as reported by TechCrunch.
The memo is given to the employees, Vestberg said that Apollo’s “powerful vision” will be not just playing on revenue-generating businesses that have been grown out as a part of Verizon Media, but leveraging that to work with other assets that Apollo has in its portfolio, which include a pretty wide range of companies in the TMT sector such as Rackspace and Charter Communications, as well as a ton of other kinds of companies across retail, financial services, industrial, manufacturing, and more.
Hans Vestberg shared “What made Apollo’s offer so appealing, is that it includes leveraging the entire Verizon Media ecosystem of ad tech, affiliate relationships, data, insights, targeting and reach,” as reported widely.
He mentioned “After a strategic review, Guru and I discussed, and believed, that the full value of Media’s offerings has yet to be unlocked,” in its internal memo to employees at Verizon.
The memo, an internal one, to its employees, Vestberg suggested that the Apollo will, here-further not be only focusing on its profit businesses, but will do work with its other meaningful assets as well. These asset companies are Rackspace and Charter Communications which works across finance, retail, industry, and manufacturing.