AOL Sale Could Fetch $1.5 Billion As Apollo Reviews Potential Sale: Report

Apollo Global Management (APO) is reportedly considering the sale of AOL after reviewing inbound interest in the business.

According to a report by The Wall Street Journal, citing people familiar with the matter, talks are at an early stage and may not result in a transaction. Sources added that if a deal materializes, AOL could be valued at around $1.5 billion.

Apollo’s stock edged 0.5% higher in midday trade on Tuesday amid broader market weakness. Retail sentiment around the company on Stocktwits trended in ‘bullish’ territory over the past day.

Apollo acquired AOL in 2021 as part of its $5 billion purchase of Verizon’s media assets, which also included Yahoo. The report stated that the early internet company, which gained popularity in the 1990s, currently generates approximately $400 million in annual earnings before interest, taxes, depreciation, and amortization (EBITDA). 

AOL announced in August that it would be shutting down its dial-up service, which allows users to connect to the internet via a phone line, by the end of September, after more than 30 years of operation. "AOL routinely evaluates its products and services and has decided to discontinue Dial-up Internet, " the company said in a notice to subscribers. As of now, the report stated, the company’s main business lines include software for internet privacy and protection, as well as the AOL.com website and email domain. 

Apollo’s stock has fallen more than 16% this year, but gained over 21% in the last 12 months.

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