But he warned: "As Verizon takes on more media ownership with Yahoo, the potential for conflict of interest increases.
Ulinski said Verizon has a history of successful integrations of companies it has acquired. "Verizon now has the content, subscriber base, delivery infrastructure and advertising technology to create a next-generation model. While Yahoo's assets carry "tremendous value" to Verizon, "the challenge is co-mingling Yahoo's assets with those of AOL and Verizon while keeping consumer privacy top of mind," said Seth Ulinski, an analyst at Technology Business Research. Questions already are being raised over whether Verizon can successfully integrate Yahoo into its existing operations with AOL. "It would have been nice for AT&T to have Yahoo, but it's critical for Verizon," Entner added.ĭifficulties in integrating Yahoo into Verizon "Verizon is seeking to get revenue growth through advertising and benefit from the secular shift from becoming a wireless internet company, away from offering regulated wireless services."Įntner said that "with competent management, I view the purchase as pure upside." He said the Yahoo purchase keeps Verizon more internet-focused, while AT&T and DirecTV are concentrating more on video. "Yahoo has been a mismanaged company for at least a decade, but its massive audience reach is testimony to the resilience of its assets," said Roger Entner, an analyst at Recon Analytics. Yahoo also had 225 million month active users of its email service in January, the company said.
In announcing the deal on Monday, Yahoo said it had 1 billion monthly active users in January, including 600 million monthly active users who are engaged in search, communications and use of other digital content products. wireless subscriber market is essentially saturated.Īs part of that diversification effort, AT&T bought DirecTV in 2014, and Verizon bought AOL, a digital content and marketing company, last year. Both Verizon and AT&T need to diversify beyond traditional wireless service revenues, which are in gradual decline because the U.S.
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