Apollo Global Management (NYSE: APO) is preparing to close its $5-billion acquisition of Verizon Media (NYSE:VZ) on Sept. 1, and the private equity firm is already causing consternation among existing executives at the company soon to be known as Yahoo.
Apollo hasn’t informed Verizon Media leadership, including Chief Executive Guru Gowrappan, of their new roles at the company once the private equity firm takes over, according to people familiar with the matter. The lack of information has irritated current Verizon employees, who don’t know if they have a long-term future with the company, said the people, who asked not to be named because the discussions are private.
Private-equity takeovers frequently lead to significant leadership changes. Strategic shifts are often the core rationale for transactions, and Verizon Media — which will be formally renamed Yahoo upon closing — likely won’t be an exception. Apollo has been working with executive search firm Egon Zehnder to seek out new leaders.
That search includes former Bleacher Report CEO Howard Mittman for a "head of sports" role, two of the people said. Mittman, who left Bleacher Report last year amid concerns over a lack of diversity at the company, declined to comment.
Apollo shares reached noon EDT up 91 cents, or 1.6%, to $58.57, while those for Verizon slumped 55 cents to $55.01
