Will Verizon's plan for Yahoo work? | The Tylt
Verizon announced it will buy Yahoo for $4.83 billion. The deal will allow Verizon to compete at scale in digital advertising with Facebook and Google. But this move is questioned by some industry experts given Yahoo’s long-standing problems.
Will Verizon’s plan succeed?
Verizon intends to merge Yahoo with AOL, adding Yahoo’s vast audience to its already formidable stable. Quartz frames this merger as making “Verizon the king of the Internet for the olds.”
Verizon has found a large, connected audience of consumers and readers that see millions of advertisements a day. This makes for a decent business—assuming it can find profitability in those websites after all the fat has been cut from Yahoo.
Jeff Center, executive director of the nonprofit Center for Digital Democracy, told the Washington Post that Yahoo’s acquisition turns Verizon into a “big data super-giant.” While this is probably bad for consumers and digital privacy, it places Verizon in a good place to compete with Google and Facebook.
But the big question is whether Verizon will be able to find profitability. The merger with AOL will increase efficiencies in Yahoo, which would better position it to turn a profit. Yahoo has shown it has major structural issues that may not be able to be fixed anytime soon. Yahoo’s core business profits have been shrinking for a long time despite very smart people trying to turn it around.
Will Verizon’s acquisition of Yahoo pay off?
Will Verizon's plan for Yahoo work?