Apollo Weighs Sale of AOL After Unsolicited Bids Could Value Unit at About $1.5 Billion

Apollo Global Management is weighing a potential sale of AOL after receiving unsolicited bids that could value the legacy internet unit at roughly $1.5 billion, people familiar with the matter told The Wall Street Journal.

The discussions are preliminary and may not result in a transaction, the people said. Apollo has not launched a formal sale process but has entertained outside interest in AOL, which is operated under Yahoo, a subsidiary of Apollo.

The reported price tag is about four times AOL’s annual earnings before interest, taxes, depreciation and amortization (EBITDA), with the company generating roughly $400 million in EBITDA, according to the Journal. That cash-generation profile has drawn attention from potential suitors even as AOL’s consumer-facing profile has shrunk from its 1990s peak.

AOL today comprises a mix of businesses including privacy and security software, the AOL.com news portal and email services. Axios recently reported that Apollo was not actively marketing AOL, but that suitors were attracted to the unit’s steady cash flow and business lines tied to trust and identity protection.

"AOL’s story isn’t about dial-up nostalgia but about trust," Ismael Hishon-Rezaizadeh, chief executive of New York-based tech firm Lagrange Labs, told the New York Post. He cited verifying content, detecting deepfakes and safeguarding email and identity services as areas that give the brand commercial relevance.

AOL’s remaining dial-up internet service is due to be discontinued on Sept. 30, and more than 160,000 Americans were still using dial-up as of 2023. The ending of dial-up marks the closing of a long chapter for a brand that introduced millions of consumers to the internet in the 1990s.

The company was founded in 1985 as Quantum Computer Services, rebranded as America Online in 1991 and shortened its name to AOL in 2006. Verizon Communications acquired AOL in 2015 for $4.4 billion and bought Yahoo in 2017 for $4.8 billion, combining the assets into a division initially called Oath and later Verizon Media. After writing down a significant portion of the business, Verizon sold its media arm to Apollo in 2021 for about $5 billion, with Verizon retaining a roughly 10% stake as the business rebranded under the Yahoo umbrella.

Private equity attention to legacy digital media brands has grown as buyers seek steady cash flows, niche technology capabilities and consumer data assets that can be monetized in other ways. Still, sources caution that early-stage conversations do not guarantee a sale and that Apollo has not confirmed any formal process for soliciting bids.

An Apollo spokesperson declined to comment when contacted by The Post. Any potential transaction would be closely watched as another example of private equity interest in established digital properties and as a barometer of what buyers are willing to pay for brands with recognizable names but evolved business models.

AOL’s cultural imprint — from ubiquitous trial installation discs to the phrase "You’ve got mail" and a cameo in the 1998 film of the same name — remains larger than its contemporary business footprint. Whether that cultural value translates into acquisition interest or a sale at the levels reported will depend on negotiations and the strategic fit for any suitor.