Yahoo, that has been restructuring its business for year now, finally sold out to Verizon. Verizon sealed the deal for $4.83 billion, all in cash. This acquisition gives Verizon access to Yahoo’s advertising technology tools such as BrightRoll and Flurry, assets such as Search, Mail, Messenger as well as real estate, among others. The deal is expected to close in Q1 2017.
Breaking down the layers, Sanchit Vir Gogia, Chief Analyst and CEO, Greyhound Research explains this acquisition has only put Verizon in the big mobile advertising and mobile marketing space. So, far there were three players – Facebook , Google and Microsoft with its recent acquisition of LinkedIn.
“The space is of three folds – data and Internet, content and advertisement and back-end technology to support it. Verizon does a fantastic job with data and Internet services and even bought AOL last year to beef up content and advertising. Ultimately, in the game of mobile marketing, the person with biggest network is the winner. Verizon has a base of Internet services already. Now, to beef up their network they have added Yahoo so that the firm comes up with its own content brand and advertising tech. This will put them in competition with Google, Facebook and Microsoft,” Gogia explains.
Gogia further explains how Verizon has a base of Internet services already and also the enterprises side. Now, it can sell marketing services to its enterprise services. It already works with a lot of publishers and others with technology and enterprise accounts. “Verizon’s current enterprise base will act like a huge plus as money can be accrued out of enterprise accounts,” he adds.