"This allows us to focus on what we do best - providing the best TV, internet, and voice services out there," Verizon said in an April statement on the corporate website informing customers of the pending changes. Verizon expects to close on the Yahoo deal this summer. Verizon also has reached a deal to acquire troubled internet giant Yahoo, which also runs an email platform with millions of accounts. The telecom giant now deems its AOL subsidiary, formerly America Online, a better email platform and is exiting the email service, company spokesman Raymond McConville said Tuesday. Subscribers enrolled in these accounts through Verizon's legacy DSL service and Fios. There are about 4.4 million account holders, about 2.3 million of which are considered active by Verizon. But they will have to follow instructions contained in a link that Verizon will email to them. email addresses can be retained through AOL, so that longtime users don't have to change them. Monday's deal marks the latest change in ownership at AOL, whose massive valuation enabled the pioneering internet service firm to close a deal for Time Warner in 2001, which was unwound eight years later.ĪOL operated independently, focusing on digital media and news, until it was acquired in 2015 by Verizon for $4.4 billion.Millions of Verizon email account holders - those with addresses - will lose their emails and contacts if they don't shift over to Verizon-owned AOL, the company says. In recent years it acquired the Venetian resort in Las Vegas, the Qdoba restaurant chain and the Fisker electric car company. I have full confidence that Yahoo will take off in its new home."Īpollo has a wide-ranging investment portfolio including real estate, finance and consumer brands. During the strategic review process, Apollo delivered the strongest vision and strategy for the next phase of Verizon Media. Vestberg added: "The next iteration requires full investment and the right resources. Hans Vestberg, Verizon's CEO, said the media unit "has done an incredible job turning the business around over the past two and a half years and the growth potential is enormous." Verizon is selling its Verizon Media division, which includes Yahoo and AOL, to a private equity firm for $5 billion With Google and Facebook dominating the online ecosystem, "Yahoo didn't do things well and Verizon wasn't able to do much with it," said Roger Kay, analyst at Endpoint Technologies Associates. Verizon had been seeking synergies from Yahoo's massive online presence and its other media operations including news websites TechCrunch and the recently sold Huffington Post. It merged Yahoo into its division with AOL, another star of the early internet era, which Verizon acquired in 2015.īoth AOL and Yahoo lost traction-and lofty market valuations-as internet users shifted to newer platforms such as Google and Facebook. Verizon acquired Yahoo in 2017 for some $4.5 billion, ending the run for one of the storied brands of the early internet. Verizon will retain a 10 percent stake in the company, which will be known as Yahoo going forward and will continue to be led by chief executive Guru Gowrappan, the company said in a statement. The deal with Apollo Global Management also includes the entire Verizon Media unit, including the advertising tech operations of the two brands.
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