American online shirt, AOL from Urban Outfitters
Source: Urban Outfitters
Amid the multitude of Verizon Media assets Apollo Global Management is buying from Verizon – Yahoo Finance, TechCrunch, Ad Tech, Yahoo Fantasy – there’s one cash flow that won’t die: AOL.
The famous internet company that Time Warner once bought for $ 182 billion and used to make billions of dollars annually selling dial-up modem access, still has a monthly subscription service called AOL advantage.
in the In 2015, 2.1 million people still used AOL’s dial-up service. This source of income has dried up. According to someone familiar with the matter, the number of dial-up users is now “in the low thousands”.
But AOL still has a pretty lucrative customer base that pays for tech support and identity theft every month. There are approximately 1.5 million monthly customers You pay $ 9.99 or $ 14.99 per month for AOL Advantagesaid another person who asked not to be named because the information is private. If the average revenue per user is conservatively $ 10 per month, that translates to $ 180 million in annual revenue.
Apollo announced Monday that it was paying $ 90 billion for Verizon Media. The private equity firm has no immediate plans to spin off or sell Verizon Media Group’s assets and prefers to grow its collection through investment and management, according to respondents. Still, the long-term plan could include finding various buyers for the collection businesses after Apollo tries to add value to the units, people said.
Verizon agreed to pay $ 4.4 billion for AOL in 2015 and $ 4.5 billion for Yahoo in 2017.
While AOL has largely disappeared from popular culture, Yahoo still has around 150 million active users per day and nearly 900 million active users per month.
An Apollo spokesman declined to comment. A Verizon Media spokesperson did not immediately respond to a comment.
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