Telco Transformation - Verizon Betting Big on Yahoo's Assets

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Verizon Betting Big on Yahoo's Assets Mike Robuck, Editor, Telco Transformation, 7/26/2016 Email This Print Comment 32 comments Login 50% 50% On the heels of yesterday's news that it was buying Yahoo's web assets for $4.83 billion, Verizon Chairman and CEO Lowell McAdam outlined his company's game plan during a second quarter earnings call Tuesday morning. During this morning's earnings call, McAdam talked up how Verizon hopes to become a prime time player in the digital media market, according to a story by Light Reading's Alan Breznick. (See Verizon Sports Big Plans for Yahoo.) Verizon Communications Inc. (NYSE: VZ) plans on using Yahoo Inc. (Nasdaq: YHOO)'s online media assets to bolster its ad sales revenues. Currently, Verizon is a distant third behind Google (Nasdaq: GOOG) and Facebook . "We see tremendous opportunities in the digital media marketplace," McAdam said, according to a transcript of the earnings call by Seeking Alpha. "Verizon intends to be a significant player in this space. By acquiring Yahoo's operating business, we are scaling up to be a major competitor in mobile media." Verizon will use Yahoo Sports to create broader inroads into major league sports partnerships. On the earnings call, McAdam said he had recently spoken with NFL Commissioner Roger Goodell and NBA Commissioner Adam Silver about streaming more content both in and out of their respective seasons. If Verizon can forge agreements with major sports leagues it can stream that content across Fios, AOL, Go90 and Yahoo. In addition to Yahoo Sports, Verizon will also have access to millions of users via Yahoo Finance, Yahoo Mail, Flickr and Tumblr once the deal closes early next year. According to the Seeking Alpha transcript, McAdam said Yahoo Finance was probably Yahoo's strongest asset. Verizon plans on partnering with networks that have finance channels in place. He also said that Verizon would look at combining the various email platforms across AOL, Verizon and Yahoo to drive more traffic to its sites. "So I think the difference for us is we have a lot of -- us versus the Yahoo management -- we have a lot of the relationships well-established, because of our Fios and our mobile assets," McAdam said, "and we can combine them with their (Yahoo's) platforms and their leadership expertise to deliver a very good lineup here." — Mike Robuck, Editor, Telco Transformation comments		More Blogs from Mike Robuck TT Caption Contest: Claus & Effect 17 comments The winners from the holiday edition of Telco Transformation's caption contest are announced. TT Caption Contest: Holiday Edition 146 comments It's the final cartoon caption contest of the year for Telco Transformation. Comcast, AT&T Hand Out Stocking Stuffer Bonuses 47 comments Comcast and AT&T are among the first companies to pass out bonuses to employees after tax reform legislation passes. 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