Verizon to sell Yahoo, AOL for $5 billion to Apollo

Apollo Global Management Inc. agreed to pay about $5 billion to acquire Yahoo and AOL from Verizon Communications Inc. as the wireless company exits its ill-fated foray into the media business.

The private-equity firm is paying $4.25 billion in cash for a 90% share of the media assets. Verizon will keep a 10% stake and $750 million of additional preferred stock in the new company, called Yahoo, that will be formed to operate the business.

The Wall Street Journal earlier reported the potential sale of Verizon’s media assets to Apollo. Verizon Media, which mostly struggled to grow against Alphabet Inc.’s Google and Facebook Inc., generated $7 billion in revenue last year.