Apollo bought Yahoo and AOL from Verizon in 2021 for about $5B. 5 years later, Yahoo has returned Apollo’s capital in one of the fastest returning deals in the firm’s history. Jim Lanzone has been CEO of Yahoo since September 2021. Yahoo ranks among the top 5 internet companies in the US, reaching roughly 90% of the American online population and 700M users globally each month across Finance, Sports, Mail, News, and Search. Jim previously served as CEO of Tinder, CBS Interactive, where he launched CBS All Access (now Paramount+), and Ask Jeeves, and co-founded eTour. He sits on the board of Snap. We go inside the Apollo acquisition, a structure of roughly $4.25B in cash, $750M in preferred interests, and a 10% stake retained by Verizon, and how Jim works with Reed Rayman, now Head of the AI Sector at Apollo and still Yahoo’s board chair. Jim walks through reorganizing Yahoo into GM-led brands, shutting down and selling a money-losing ad tech stack, and divesting EdgeCast, TechCrunch, and AOL, which went to Bending Spoons for a reported $1.4B to $1.5B. We also cover Yahoo Scout, the company’s first in-house search engine in 17 years, and why startups with less than one-tenth of 1% of Yahoo’s users carry higher valuations. “It’s one of the fastest returning deals in the history of Apollo. We are playing with house money now for what the upside could be here.” We cover: › Inside Apollo’s ~$5B acquisition and the deal structure › Working with Apollo’s Reed Rayman on a growth-led turnaround › Divesting AOL, EdgeCast, TechCrunch, and the ad tech stack › Yahoo Scout, AI search, and 30 years of search data › 700M monthly users and Yahoo’s valuation vs AI startups Jim Lanzone: https://x.com/jlanzone Molly O’Shea: https://x.com/MollySOShea Sourcery: https://x.com/sourceryy 𝐄𝐏𝐈𝐒𝐎𝐃𝐄 𝐋𝐈𝐍𝐊 YouTube: https://youtu.be/31JELwiXgMo 𝐒𝐏𝐎𝐍𝐒𝐎𝐑𝐒 • Brex—The modern finance platform, combining the world’s smartest corporate card with integrated expense management, banking, bill pay, & travel. https://brex.com/sourcery • Harvey—The AI platform built for legal work, is helping the best firms and companies close deals faster. More than 200,000 lawyers, 80% of the Am Law 100, and over 20% of the Fortune 500 build with Harvey. Visit: http://harvey.ai/ • Zone—develops next-generation data center campuses, partnering with AI companies, site developers and technology leaders to bring compute online faster and at scale. Visit: https://zonefrontier.com • Mercor—The human intelligence behind frontier AI. Frontier labs and leading enterprises use Mercor to turn the knowledge of 5M+ experts into the data, evals and benchmarks that make AI better at real work. Visit: http://mercor.com/sourcery • VCX—VCX is the public ticker for private tech, allowing investors of all sizes to invest in venture capital. View The Portfolio at http://GetVCX.com • Deel—Deel is the global people platform that helps startups hire, manage, pay, and equip anyone, anywhere. Trusted by more than 35,000 fast-growing companies, Deel is the people platform that just works, so teams can scale without the chaos. Visit: https://www.deel.com/sourcery • Public–Investing platform Public just launched Generated Assets, which lets you turn any idea into an investable index with AI. With Generated Assets, you can build, backtest, refine, and invest in any thesis with AI. Gone are the days of one-size-fits-all ETFs. https://public.com/sourcery Follow Sourcery for the latest updates! https://www.sourcery.vc Disclosure: Paid Ad. Agents are an experimental AI tool. Its output may be inaccurate and is not investment advice. Public Holding’s, Inc. makes no guarantees about its accuracy or reliability—verify independently before use. Brokerage accounts and services provided by Open to the Public Investing, Inc. See additional disclosures at https://public.com/disclosures/agenticdisclosures.
