Private Equity Deals with Capital Allocators Yahoo - David Sambur (Apollo Global Management), (S2, EP.05)
9 snips
Apr 19, 2023 AI Snips
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Yahoo Acquisition History
- David Samberg's team at Apollo first considered buying Yahoo in 2017 during an auction process.
- Verizon ultimately acquired Yahoo, combining it with AOL, only for Apollo to later buy both from Verizon.
Corporate Carve-Out Strategy
- Corporate carve-outs, like Apollo's acquisition of Yahoo from Verizon, can be complex but offer unique opportunities.
- Their complexity often limits the buyer universe, potentially allowing for value capture.
Yahoo's Undervaluation
- Apollo acquired Yahoo for a lower multiple due to market uncertainties and perceived risks.
- Many investors underestimated Yahoo, viewing it as a declining business, which created an opportunity for Apollo.