About 1.5 million people still pay for AOL — but now they get tech support and identity theft services instead of dial-up internet

American On-line shirt, AOL from City Outfitters

Supply: City Outfitters

Amid the hodgepodge of Verizon Media resources that Apollo World Administration is shopping from Verizon — Yahoo Finance, TechCrunch, advertising skills, Yahoo Fantasy — there is one money waft stream that can no longer die: AOL.

The illustrious web company that once sold Time Warner for $182 billion and historic to make billions of bucks yearly promoting dial-up modem get entry to, mute has a monthly subscription service called AOL Assist.

In 2015, 2.1 million americans had been mute the exhaust of AOL’s dial-up service. That earnings stream has dried up. The quantity of dial-up users is now “within the low hundreds,” in accordance to a person familiar with the matter.

However AOL mute has a barely profitable defective of customers who pay for technical enhance and identity theft products and companies each and every month. There are about 1.5 million monthly customers paying $9.99 or $14.99 per thirty days for AOL Assist, mentioned but every other person, who asked no longer to be named as a result of the records is personal. If moderate earnings per person is $10 per thirty days, conservatively, that’s $180 million of annual earnings.

Apollo announced Monday or no longer it’s paying $5 billion for 90% of Verizon Media. The non-public equity firm doesn’t have rapid plans to race off or sell any of the Verizon Media Community resources, preferring to grow the gathering through funding and management, mentioned the americans. Peaceful, the long-term thought could also personal finding diverse investors for the gathering of agencies after Apollo makes an try so as to add payment to the items, the americans mentioned.

Verizon agreed to pay $4.4 billion for AOL in 2015 and $4.5 billion for Yahoo in 2017.

Whereas AOL has largely historic from smartly-liked tradition, Yahoo mute has about 150 million day-to-day filled with life users and nearly 900 million monthly filled with life users.

A spokesperson for Apollo declined to commentary. A spokesperson for Verizon Media did now not abruptly acknowledge for commentary.

WATCH: Cramer on Verizon’s deal to sell AOL, Yahoo to Apollo for $5 billion

0 0 vote
Article Rating
Notify of
Inline Feedbacks
View all comments
Would love your thoughts, please comment.x