The private equity firm has been on a buying frenzy for the past few months and has announced deals to acquire the Craftsman Michaels and the Venetian resort in Las Vegas. It has also had a shake in its higher ranks with its co-founder, Leon Blackand announced in late March that it was him Resignation as chairman Following the reveal, he had paid more than $ 150 million to embarrassed financier Jeffrey Epstein.
Apollo declined to comment. Verizon did not respond to requests for comment. Bloomberg who first reported The awaited deal said Verizon would keep a stake in the media arm.
The deal would signal the reversal of a strategy Verizon announced in 2015 when it acquired the faded internet giant AOL for $ 4.4 billion. The purchase should provide Verizon with a mobile phone entry with the aim of using AOL’s advertising technology to sell ads against digital content. Verizon doubled that strategy in 2017 with the acquisition of Yahoo worth $ 4.48 billionit combined it with AOL under the Oath umbrella.
However, Google and Facebook have proven to be excellent competitors in the digital advertising market. Verizon recognized its power in 2018 when it wrote down the value of the oath by $ 4.6 billion, in part due to “increased competitive and market pressures” that have resulted in “less than expected sales and earnings.”
Under its CEO, Hans Vestberg, the company has instead emphasized the improvement in technology for the mobile communications business. Payment was agreed in March nearly $ 53 billion Licensing of wireless radio waves that will help the company expand its next generation 5G infrastructure. It also plans to spend $ 10 billion on cabling additional cell towers and upgrading its systems over the next few years. The company’s total debt now exceeds $ 180 billion.
The media business was originally supposed to differentiate Verizon from its competitors by offering it unique content offerings, but it didn’t work out that way. The telephone provider instead reached an agreement in 2019 with Disney to offer its customers its new streaming service Disney + free of charge. (AT&T on the other hand) spent $ 85 billion in 2018 to buy Time Warner to create your own streaming platform, HBO Max.)
Last year, Verizon began dismantling the media group with the Sale of HuffPost to BuzzFeed.