You might have heard: Yahoo agreed to sell its web business to Verizon for $4.8 billion (Bloomberg) and Yahoo’s remaining assets will rebrand after the sale to Verizon is final in 2017 (TechCrunch)
But did you know: Verizon’s purchase of Yahoo puts the company on the path to building a “new media empire capable of delivering potentially billions in advertising revenue,” Ainsley O’Connell writes. With Yahoo’s assets, Verizon will gain 600 million monthly mobile users to add to its existing base from its Go90 mobile video app. By purchasing Yahoo, O’Connell writes that Verizon is essentially taking a shortcut to being able to compete with bigger companies such as Facebook and Google in digital advertising.
+ Ken Doctor writes that the message to American advertisers is, ”You will now have a big, smart alternative to Google and Facebook” (Politico Media); Despite its size, Yahoo still failed at digital video, showing that scale isn’t everything and leaving questions for how Verizon will proceed (Nieman Lab)
+ Yahoo spent millions of dollars to bring on big names such as Katie Couric and David Pogue, but many of those people may not stay after the deal is final (CNN Money) and Marissa Mayer says she’s planning on staying with the company after it becomes part of Verizon (Yahoo)