What Happened
Verizon announced on Monday morning that it has reached an agreement to acquire Yahoo’s core assets, primarily its internet business along with some real estate, for $4.8 billion in cash. Verizon says it plans to integrate Yahoo’s internet assets into AOL, which it acquired for $4.4 billion last year. Pending the usual regulatory approvals, the deal is expected to close in Q1 2017.
Why Brands Should Care
Much like buying AOL, this Yahoo acquisition should give Verizon’s ad business a strong boost in terms of audience reach and user data. The online properties and user data that Yahoo brings complements the mobile properties and user data that Verizon already has, and the combined data pool should significantly increase the cross-platform targeting capability of Verizon’s ad operations, similarly to the way that buying AOL’s ad operations has. Granted, the operation likely won’t be able to truly challenge Google and Facebook’s dominant positions in the mobile advertising space. But by joining forces, it might emerge as a competitive rival that provides an alternative for brands to consider when it comes to digital advertising.
Source: Ad Exchange