The company’s advertising group will be reduced by half by the end of the year
Yahoo's latest deal underscores its move to boost revenues and use its cash to grow its core businesses, including Yahoo Sports, Yahoo Finance and Yahoo Mail.
Why it matters: Acquired last year by Apollo Global Management, Yahoo plans to add on new commerce and transaction businesses, such as sports betting and, according to a company source, retail stock trading.
Of note: Yahoo generates around $8 billion in GAAP revenues annually, said the source. The company reported $7.1 billion in full year revenues in 2020, the last year it was owned by Verizon.
Background: Now that the company has sold off its noncore assets, it's focused on core areas such as sports, finance and mail.
Details: The company is eyeing the following strategic moves, Axios has learned:
Catch up quick: Apollo acquired Yahoo and AOL for $5 billion from Verizon in 2021, and it secured roughly $2 billion in debt to finance the deal.
Be smart: Yahoo is expected to continue to explore some forms of subscriptions where it makes sense, like premium offerings for Yahoo Finance or Yahoo Mail, the source said.
The bottom line: "We’re here to invest," Lanzone told Axios. "Investing means not only innovating internally but being open to all partnerships, all M&A possibilities."
Washington is demanding that the app’s Chinese owners sell their stake, company representatives have said