$4.8 Billion Deal Sealed By Verizon To Acquire Yahoo.
The decision to all the speculation around the world regarding the Yahoo acquisition by Verizon has come to an end with Verizon clinching and signing off a great deal with a bundle of hope to flourish in the near future. Yahoo is considered as one of the dependent search engine giant for the users of the internet. Verizon acquires the digital assets of search engine giant for $4.8 billion ( in cash). Whereas the remaining assets of Yahoo and the non- core patents and stake in Yahoo Japan and Alibaba will now be a prominent part of a publicly trade investment company which would be rebranded with a new name.
This deal is crucial for Verizon as it provides them a way to establish and set a new media empire. To have a better and good media and advertising business it acquired AOL in the year 2015 for $4.4 billion. Then, gradually it signed up with some of the startup video media platforms like Complex media, Awesomeness TV etc to achieve their goals effectively.
A company which desires to grow in the line of media should definitely have a good number of mobile user’s. And Verizon gains around 600 million users monthly with the help of Yahoo Finance and Yahoo Mail along with other assets like messenger, real estate etc.
Verizon president of product innovation and new businesses, Marni Walden said that the deal included Yahoo’s core operating business and patents. Walden also added, “ Yahoo gives us scale and that’s what’s most critical here. We go from being in the millions of audience to the billions. We want to compete and that’s the place that we need to be, so we’re very pleased with where we are today”.
You might question ??? WHY VERIZON BOUGHT YAHOO …!!!!
Well..!!! The main motivation behind acquiring Yahoo was to scale Verizon widely. Facebook and Google almost rule the world of the internet having a wide scale of audience. Therefore, developing and generating an organic audience is quite a tricky task. So when it comes to establishing a strong global presence, one has to compete with a variety of tech giants. Yahoo has a massive scale of the audience with an estimate of 1 billion users .
Regarding which Walden says, “We’re building something that we want to turn into a very large business. Getting audience and getting scale is critical.”
Therefore, to build a good scale which is very essential to make good money from digital marketing on mobile devices, buying of Yahoo digital assets became important. Because the growth and progress in the traditional telecom business are much slower.
Reports says that, Verizon is trying to pivot its business from analog to digital. Futher, it added, “ It believes that a combined AOL/Yahoo would provide the digital advertising platform they need to execute their video reinvention strategy”.
The acquisition combination would help Verizon generate good revenue along with a good amount of substantial users from around the world. Walden expects the combination of AOL and Yahoo to break the single- digit market share and go ahead to make it double-digit breaking all the barriers.
HOW WOULD THIS VENTURE BE GOOD FOR YAHOO ??
This is an opportunity for CEO Marissa Mayer’s to validate her ability in the media stream.
Mayer says that “This transaction also sets up a great opportunity for Yahoo to build further distribution and accelerate our work in mobile, video, native advertising and social”.
By extending an arm towards growth, it helps Yahoo to get better and better with their brand and name.
Therefore, Verizon aims for a greater result by partnering with several tech giants in the near future. Because building an audience is a great thing to do with it comes to increasing flourishing in the media platform.