The Strategist

Verizon considers selling media assets, including Yahoo and AOL


04/30/2021 - 03:12



US telecommunications company Verizon Communications is considering the sale of media assets, including parts of Yahoo and AOL.



Mike Mozart
Mike Mozart
The Wall Street Journal reported, citing sources, that the volume of transactions may amount to between $4bn and $5bn.

Thus, Verizon Communications, the largest U.S. mobile operator, may leave the media market, entry to which has been too expensive for it. Verizon Communications has been building a portfolio of media assets for several years. It included HuffPost, Tumblr, TechCrunch, Endgadget, Yahoo, AOL and others.

Verizon Communications paid a total of more than $9 billion to buy AOL in 2015 and Yahoo in 2017. Yahoo and AOL, which retained its subscriber base, were planned to be back in demand from users after the reorganisation. 

However, users never returned to these platforms and the companies did not reach their revenue targets. In 2018, Verizon was forced to write down $4.5 billion in asset value and then began to gradually sell media assets, starting with news publication HuffPost and blogging platform Tumblr.

Verizon Communications' media business generated $7 billion in revenue in 2020, down 5.6% from 2019. In the first quarter of 2021, revenue rose 10% to $1.9 billion.

source: cnbc.com




More
< >

Friday, October 15th 2021 - 06:44 IKEA warns of shortages in its shops by mid-2022

Thursday, October 14th 2021 - 07:58 Blackrock's January-September net profit jumps by 26%