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CMO Today: How Apollo Plans to Make Yahoo and AOL Work

Email sent: May 4, 2021 7:20am
Plus: Meredith sells local TV business for $2.7 billion ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

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How Apollo Plans to Make Its $5 Billion Bet on Yahoo and AOL Work; Meredith Quits Local TV

By Nat Ives

 

Verizon Media generated $7 billion in revenue last year. PHOTO: DAVID PAUL MORRIS/BLOOMBERG NEWS

Good morning. Apollo agreed to pay about $5 billion to acquire Yahoo and AOL from Verizon as the wireless company exits its ill-fated foray into the media business, Miriam Gottfried and Drew FitzGerald report.

Apollo’s strategy for the business revolves around getting more revenue from each of its 900 million active monthly users. Verizon’s positioning of the media business as a complement to its core mobile business meant it hasn’t pursued some opportunities to maximize the value of each asset, executives at the private-equity firm said.

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Yahoo has been a popular platform for sports betting, for example, but isn’t formally licensed to host gambling. Apollo is licensed in more than 200 jurisdictions for gambling.

“This is a typical Apollo deal in that these are very iconic, industry-leading, businesses, but they need a little tender loving care,” David Sambur, the firm’s co-head of private equity.

Related: Verizon’s deal casts a shadow on the efforts of rival telecom AT&T to build a digital ad business. [Ad Age]

Yahoo is beginning a new brand campaign just as the business is headed for new ownership. [Campaign]

 

Quotable

“The garden could’ve had a door. It’s artificially walled in.”

— Epic Games attorney Katherine Forrest on the so-called walled garden of Apple’s App Store, as the trial began in Epic’s antitrust lawsuit against Apple. Attorneys for Apple defended its policies as critical for its App Store’s viability and success.
 

Meredith Exits Local TV

Meredith said Gray agreed to purchase its business that owns or operates 17 television stations. PHOTO: CHARLIE NEIBERGALL/ASSOCIATED PRESS

Meredith is selling its broadcast-television business to Gray Television in a deal the company said would allow it to better focus on its magazine brands and digital-media properties, Micah Maidenberg reports.

Gray agreed to purchase Meredith’s business that owns or operates 17 television stations, reaching 11% of U.S. households, for $2.7 billion.

Meredith has been remaking its media portfolio over the past several years. In 2018, it announced deals to sell magazines such as Time and Fortune, and more recently agreed to sell Travel + Leisure amid financial pressure in the magazine industry.

When the latest deal is complete, Meredith said it would work to expand brands such as People, Better Homes & Gardens and Allrecipes.

 

Best of the Rest

PHOTO: EXTRA GUM

Extra Gum’s euphoric new ad imagines a day when pandemic restrictions end, set to Celine Dion’s “It’s All Coming Back to Me Now.” [Muse by Clio]

Facebook’s oversight board said it would issue a ruling Wednesday morning that could determine whether former President Donald Trump can return to the company’s platforms. [WSJ

JetBlue named Adam&EveDDB to handle its advertising, shifting the account from MullenLowe after 11 years. [Insider

Eleven Madison Park is adopting a meat-free menu when the three-Michelin-starred restaurant reopens in New York City next month. [WSJ

Some Hilton hotels are introducing a menu for guests’ dogs that includes gluten-free pasta and nonalcoholic wine. [CNN

 
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