AOL and Yahoo, as part of Verizon Media, are being sold to a private equity firm.
The phone company made a deal with Apollo Global Management for $5 billion. Verizon will maintain a 10% stake in the company as part of the deal, according to a release fromthe company.
The new company will be known as Yahoo when the transaction is completed and continue to be led by CEO Guru Gowrappan.
The $5 billion deal consists of $4.25 billion in cash, preferred interests of $750 million and the minority stake in the new Yahoo.
Verizon Media consists of AOL, Yahoo, and "leading ad tech and media platform businesses."
Verizon bought AOL for about $4.4 billion in 2015 and Yahoo for $4.48 billion in 2017.
The deal is expected to close later this year.