An independent group at US Apollo Global Management is about to acquire Yahoo and other Verizon Communications media, people who know this, the telecom team will turn to its computer business and roll out 5G wireless technology.
The deal, which Apollo pays between $ 4bn and $ 5bn for the deal, could be announced on Monday, people added.
It could show a huge turnaround for US wireless users, who between 2015 and 2017 spent nearly $ 9bn to acquire Yahoo and AOL as the distribution anchor for online sales known as Oath.
The approach reflected the ideas already shared among large corporations around the world, who seek to benefit from the explosion of digital use as content owners instead of using the network, or “silent pipes”.
Netflix and Amazon have set up online television businesses to cater to their desired video users, while media companies such as Disney and ViacomCBS have rushed to restructure their businesses to adapt to changing customer and building search towers their.
But the telecommunications companies have been working hard to establish themselves as manufacturers and owners of software that is distributed over their radios and wires.
Verizon’s problems are not unique. Big competitor AT&T finds Time Warner, Owner of CNN, HBO and Warner Brothers, for $ 85.4bn about five years ago to create a promotional business that could take Netflix.
The approach has so far been mixed. AT&T paid $ 15.5bn for its pay-TV business in January, when customers switched to streaming from cable and satellite.
Verizon also hopes to develop an advertising program that would allow it to compete with Google and Facebook. However, it failed to gain a significant share in the market from its competitors, forcing it to reconsider its position, said a person familiar with the matter.
The sale of radio goods also confirms Verizon’s idea of further expanding its 5G internet services, which affected 230m people in more than 2,700 cities since December last year.
Verizon made a $ 4.6bn subscription to its media business in 2018, the business “facing competitive and market challenges… Which resulted in lower revenue than expected and higher incomes,” the company said.
“These challenges must continue and have led to a decline in our market to our competitors in the digital marketing business,” he added.
Verizon “also benefited from the expectations of the integration of… Yahoo and AOL”, it said.