Verizon, the American telco, has officially closed the acquisition of Yahoo’s Internet assets at a price tag of $4.5 billion. Operations will be merged with Verizon-owned AOL to form a new company called Oath. Verizon has said that it wants to focus on digital advertising and online services with Oath.
Yahoo’s ad technology should help it do just that to reach an estimated $5 billion in ad sales in 2017. However, it faces stiff competition from the likes of Google and Facebook, but also smaller players such as Snapchat.
So what exactly did Verizon buy?
The Yahoo Internet assets include ad tech from its Gemini self-serve advertising platform, which offers native ads and search formats. Programmatic video and display ads will also be covered as part of BrightRoll. Given that Verizon already owns AOL, and therefore a dedicated programmatic and video ad platform, the Yahoo acquisition should slot in nicely.
Not to forget the fact that Verizon, as a major US telco, has access to data from 1.3 billion users and 100 million wireless subscribers.
In addition, the company has a dedicated wireless user data collection programme which includes demographics, location data, browsing activity and app usage of consumers.
It’s clear that the company is positioned to become a strong player in the mobile and digital advertising market.
Oath won’t however just be another advertising company, but instead include a wide ranging consumer offering from news, sports and entertainment. User growth is already projected to hit 2 billion by 2020 at an annual revenue of $20 billion from $7 billion today.