Verizon Gets Bigger Role in Media, Advertising; Yahoo Becomes an Investment Vehicle

The Verizon Communications acquisition of Yahoo’s operating business will leave Yahoo with significant cash, its shares in Alibaba Group Holdings, its shares in Yahoo Japan, Yahoo’s convertible notes, certain minority investments, and Yahoo’s non-core patents (called the Excalibur portfolio).

These assets will continue to be held by Yahoo, which will change its name at closing and become a registered, publicly traded investment company.

Combined with Verizon’s purchase of AOL less than a year ago, the move makes Verizon a more potent force in media and advertising.

Yahoo has a global audience of more than one billion monthly active users, including 600 million monthly active mobile users.

“The acquisition of Yahoo will put Verizon in a highly competitive position as a top global mobile media company, and help accelerate our revenue stream in digital advertising,” said
Lowell McAdam, Verizon Chairman and CEO.

One might debate the success Verizon might have in its new role as a mobile media and advertising services company. There is little reason to doubt the imperative of seeking such new roles in the content or other parts of the Internet ecosystem.
Post a Comment

Popular posts from this blog

Voice Usage and Texting Trends Headed in Opposite Directions

Lower FTTH Costs Improve the Business Model, But How Much?

Acquisitions Drove Most Telco Growth Since 2000