In July of 2016, Verizon acquired Yahoo for a mere $4.8 billion. This means that Yahoo, one of the big online names from the 90’s through the early 2000’s, is no longer an independent company. Yahoo had been struggling to keep its stock value up even with all of the impressive stats of the past.
What’s the reason? One word: Mobile.
As mobile use has climbed exponentially, Yahoo didn’t keep pace. So why would Verizon, a major player in the mobile market, want to own Yahoo?
This article from Entrepreneur Magazine writer AJ Agrawal describes how Verizon will utilize Yahoo and what the investment means to mobile marketing:
Verizon Purchased Yahoo: What Does This Mean for You?
Mobile video will become even bigger
When one looks at the rise of mobile, it’s easy to see why Verizon decided to make this deal. Marketers are taking advantage of mobile and they will soon be able to take advantage of a combined mobile network and content-marketing machine.
Yahoo comes with an enormous amount of content. And this is content people are still reading on a regular basis. With more and more people reading from a mobile device, an unprecedented opportunity presents itself for marketers to hit mobile browsers.
Verizon runs one of the largest mobile networks in the United States, and it’s widely expected that the company will combine its mobile network with a huge cache of content. The content footprint will be much bigger, as a result.
Advertisers will find it easier to track their results.
What a lot of people haven’t yet talked about is how Verizon has managed to gain control of the Yahoo Gemini ad platform and the mobile analytics suite Flurry. Flurry is the interesting acquisition for advertisers because it’s universally recognized as one of the better ones for tracking results.
Verizon hasn’t made any announcements on the future of Flurry, but if it intends on appealing to advertisers, it will either keep or rebrand it.
Data that advertisers use will be cleaner.
Advertisers always want clean and accurate data when they deal with a platform. Yahoo has always had the problem of hosting thousands of Yahoo Mail accounts that are out of data and unused. It’s widely expected that Verizon will clean these up to demonstrate to advertisers that the data it has is relevant.
This is good news for marketers because they will know exactly where they stand when it comes to the numbers they have at their disposal. It’s not yet known whether these accounts will simply be deleted, though.
Will the new Yahoo acquisition provide another viable advertising platform for marketers?
Despite the coming together of two big brands like Yahoo and AOL, the number of regular users is still lacking compared to those on Facebook and Google. There’s still no competition there, but that doesn’t mean marketers should completely discount using Verizon as an advertising platform.
Mobile advertising is continuing to grow at an exponential rate, and Verizon controls a huge amount of the mobile network in the United States. The leveraging of this huge network could make Verizon a “must have” for mobile advertisers in the coming years.
Read the full article here: Verizon Purchased Yahoo: What Does This Mean for You?
This video by Anthony Tornambe gives a quick replay of the purchase and reiterates that the reason for Verizon wanting to buy Yahoo. At 1:40, he provides a quote from the former CEO, Marissa Mayer on what the buyout means for Yahoo. Of course, the fact that she is receiving a $50 million severance package might help to make the pain of failure a little easier.
Interestingly, throughout the process of acquiring Yahoo, Verizon is also announced they are buying Sensity Systems, a company that helps businesses transition from older, less efficient lighting systems to LED lighting systems that can be remotely controlled. This tweet links to an article about the purchase:
While Verizon continues to work towards closing its acquisition of Yahoo to boost its media and consumer Internet… https://t.co/XKvAsAdW7R
— Today Tech (@Today__Tech) September 12, 2016
Verizon has been busy buying up a lot of companies in the last few years. Names such as AOL, Telogis, and Fleetmatics are part of the big picture that Verizon is designing. Maybe they are going to challenge names like Facebook and Google for the top big players in technology and IoT.