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DO YOU YAHOO? Apollo Global Management (APO.N) is wading into the business of legacy internet brands. The private equity firm is buying AOL and Yahoo from Verizon Communications (VZ.N) for $5 billion. The U.S. telephone company is keeping a 10% stake in what has largely been viewed as an outsized distraction since Verizon paid over $9 billion in 2015 and 2017 for the assets , later writing them down by half. Apollo, which has some media holdings like Cox Media and helped newspaper chain Gannett (GCI.N) refinance a loan, may see a glimmer of potential between the couch cushions.
Last year, Verizon Media generated about $7 billion in revenue. That suggests Apollo is paying less than 1 times sales. Yelp (YELP.N), another internet brand founded more than a decade ago, fetches twice its trailing sales, according to Refinitiv. Many owners have wrestled with Yahoo and AOL including Jerry Yang and Tim Armstrong. Apollo boss Marc Rowen, too, may be able to pass the parcel. (By Jennifer Saba)
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