Verizon going after Yahoo [telecom]

Verizon CEO Lowell McAdam has confirmed that the company is interested in bidding for Yahoo! , after the beleaguered company indicated that it was open to consider any "qualified strategic proposals" for its struggling flagship Internet business. The move would be largely in line with Verizon's recent strategy of building a broad mobile advertising network and bolstering its ad tech capability, as it looks to grow beyond its core wireless business. In this note, we take a look at what Yahoo's Internet business could bring to the table for Verizon and how it might augment the company's $4.4 billion acquisition of AOL last year.

Why Is Verizon Betting On Mobile Advertising And Content?

The U.S. wireless market is becoming increasingly saturated, and driving meaningful growth from Verizon's core business could become challenging. Mobile advertising, on the other hand, is growing fast, as people spend more time on their mobile devices. For instance, Verizon estimated that mobile will account for 80% of consumers' media consumption time in the coming years. Ad spending is quickly moving away from traditional media such as TV and newspapers, and onto mobile devices. U.S. Mobile ad spending is expected to grow 38% this year to $42 billion, according to estimates from eMarketer, accounting for close to 21.6% of total media ad spending and 62.6% of digital ad spending. ((Mobile to Account for More than Half of Digital Ad Spending in 2015, eMarketer, September 2015)) Mobile advertising seems like a natural fit for Verizon, given its massive wireless subscriber base (roughly 112 million subscribers), customer data sets and its control over the "wireless last mile."

formatting link

Reply to
Bill Horne
Loading thread data ...

Cabling-Design.com Forums website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.