What is Next For The Verizon-Yahoo Deal?
Despite all of the unpredictability and uncertainty inherent in today's ad tech world, it's still possible for the optimum outcome to manifest. Verizon's acquisition of Yahoo's core assets is such an example.
Although the future will not necessarily be 100% rosy, it is surely the best current outcome for consumers, marketers and the industry as a whole. Verizon will certainly need to heed the lessons of poor previous mergers such as AOL - Time Warner.
Fortunately, there are many positives to focus on, such as both companies having impressive sales and industry knowledge expertise. In addition, there is the benefit of owning both production and distribution aspects of the system.
Of course, there are a number of challenges facing the new company. Verizon-AOL still has technology, privacy and legal issues to deal with in the short-term. At the same time, the AOL side may not be as lean as needed in today's dynamic market.
One of the biggest challenges, though, is the difficulty in competing with "free" business models such as parts of the Google network like YouTube. Similarly, Facebook invests little in producing content, yet is financially successful. The newly merged Verizon Yahoo! organization must find a way to be profitable in this highly competitive and challenging market.
Verizon Nears Deal for Yahoo's Internet Businesses