Observed Signal · Sep 27, 2023 · Valuation · Source: Quo Vadis News · Impact: 3/5 · Sentiment: Positive
Yahoo Valuation Under Apollo: IPO Revival
Quo Vadis analyzes Yahoo’s valuation trajectory under Apollo ownership, contrasting it with recent IPOs to illustrate renewed investor interest in adtech assets. The piece notes Apollo Global Management acquired Verizon Media in 2021 for $4.5 billion and rebranded it as Yahoo. It highlights Yahoo’s user base growth (about 150 million daily active users in May 2021 and 900 million monthly active users today) and its strong positions in Finance, Sports, and News, plus a leading email market share. The analysis points to a long-running Taboola partnership (30-year exclusive native ads) with an expected roughly $1 billion in annual revenue from integrations, and historic asset sales (Yahoo Japan for $1.6B and EdgeCast to Limelight for $300M). Using a discounted cash flow framework, the model projects 2028 revenue around $15.8B and a valuation near $22.6B, with a floor around $8B, suggesting upside potential driven by AI, Retail Media, and identity initiatives.
Valuation and investment outlook for Yahoo within the AdTech/MarTech landscape; discusses private equity ownership, potential upside, and strategic partnerships
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Key Takeaways & Evidence Grounding
- Apollo Global Management acquired Verizon Media in 2021 for $4.5 billion and rebranded it as Yahoo.
- Yahoo had about 150 million daily active users in May 2021 and 900 million monthly active users today.
- Taboola signed a 30-year exclusive native advertising partnership with Yahoo, with potential to generate about $1 billion in annual revenue from integrations.
- Yahoo Japan license sale to Yahoo Japan for $1.6 billion and EdgeCast sale to Limelight for $300 million.
- Discounted cash flow analysis estimates Yahoo’s 2028 revenue at $15.8B and valuation at $22.6B (floor ~ $8B).
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Streaming's Cloud, AI, and the Two Market Faces
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Verizon Fios Drops STARZ After Failed Contract Renewal
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Meta launches Muse for Small Business, targeting enterprise AI
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