Verizon Sells To Private Equity Firm
he future is uncertain for Verizon users wanting to stream the NFL and NBA as the company is set to sell to private equity firm Apollo Global Management for a reported $5 Billion USD.
The deal includes the sale of Yahoo, including Yahoo Sports’ and its fantasy subsidiaries.
The New York Times reports Apollo is looking for Yahoo Sports to grow in the areas of online betting and fantasy sports industries.
After purchasing Yahoo in 2017, Verizon made a five-year rights deal with the National Football League (NFL) in December the same year.
It is now unclear how Yahoo Sports streaming NFL games will be affected by the sale.
The same uncertainty surrounds the streaming of the National Basketball Association (NBA) games which were broadcast in virtual reality via Oculus headsets.
Immersive media company Ryot, part of Verizon Media, signed a multi-year deal with the NBA in June 2020 but has been included in the sale to Apollo.
It is reported Verizon will receive $4.25 Billion cash, as well as preferred interest of $750 million and a 10% stake in Version Media which is set to be rebranded as Yahoo.
In a statement, CEO of Verizon Media, Guru Gowrappan, said the sale will help lead to accelerated growth and long-term success.
“With Apollo’s sector expertise and strategic insight, Yahoo will be well positioned to capitalize on market opportunities, media and transaction experience and continue to grow our full stack of digital advertising platform, Gowrappan said.
The deal is set to be finalised in the second half of this year.