#VERIZON YAHOO WRITEDOWN FULL#

Telecom executives tend to think they can overcome this character flaw via megamerger, which usually just saddles the company with oodles of additional debt, but doesn’t really address any of the sector’s core shortcomings, built on the back of being largely government-pampered natural monopolies for the better part of a generation.Ī big part of Verizon’s attempted pivot to Millennial video ads was courtesy of former CEO Lowell McAdam, who left the company last summer. We’ve known this for more than a decade, yet somehow, each time Verizon announces some new pivot, we forget. This happens because having spent the better part of a generation engaged in turf protection and lobbying, telcos really can’t innovate. Whether it’s the company’s failed Go90 platform, failed video joint venture with RedBox, failed news website Sugarstring (which you may recall tried to ban reporters from talking about surveillance or net neutrality), its app store, its “me too” VCAST apps, or any of a dozen other countless efforts to expand into less familiar territory, Verizon failed. Pretty much every time Verizon wanders outside of its core competencies (operating admittedly excellent networks, lobbying to hamstring competition, being misleading about net neutrality), Verizon falls flat on its face. While some folks reacted with “ shock” on Twitter, none of this should really have been a surprise to anybody who has watched Verizon do business over the last decade or two. With virtually no goodwill brand value, Oath’s overall value (assets and goodwill) is now worth half of what it was a few years ago. Verizon said Oath’s brand was worth $4.8 billion when it last accounted for the company’s goodwill valuation. That’s a stunning decrease in value since it formed in 2017. Oath’s brand value is now worth just $200 million, according to Verizon. “Verizon announced Tuesday that it would take a $4.6 billion writedown on its the media unit, which includes Yahoo and AOL.

#VERIZON YAHOO WRITEDOWN FULL#

This week, Verizon was forced to acknowledge that Oath was now effectively worthless, at least in full context of what Verizon paid for it, and the company’s past claims that the company would be taking on Facebook and Google in the online advertising wars for a generation to come: The massive Yahoo hack, a controversy surrounding Verizon snoopvertising, and the face plant by the company’s well-hyped Go90 streaming service didn’t really help. Oddly, mashing together two failing 90s brands in AOL and Yahoo, and renaming the coagulated entity “Oath,” didn’t really impress many people.

Verizon’s shares opened slightly higher.So for years we’ve been pointing out that Verizon’s attempt to pivot from grumpy old telco to sexy new Millennial ad brand hasn’t been going so well. The transaction is expected to close in the second half of 2021. Gowrappan will continue to lead the new company. “With Apollo’s sector expertise and strategic insight, Yahoo will be well positioned to capitalize on market opportunities, media and transaction experience and continue to grow our full stack digital advertising platform,” said Verizon Media CEO Guru Gowrappan in the release. In a press release, Verizon said the sale allows the company to “aggressively pursue growth areas and stands to benefit its employees, advertisers, publishing partners and nearly 900 million monthly active users worldwide.” The unit was briefly named Oath, but Verizon admitted that its plans to take on Amazon, Google and Facebook was essentially a waste when it took a $4.6 billion writedown on Oath in 2018. The telephone company bought AOL for $4.4 billion in 2015 and further bolstered its portfolio with its Yahoo purchase at a similar price in 2017. Verizon once had great plans to become a dominant player in the online media and ad business.

Verizon will retain a 10% stake in the spin off and the Verizon Media Group name will be changed to just Yahoo. The sale includes AOL and Yahoo, which Verizon bought for a combined $9 billion in recent years. (CNN) - Verizon is exiting the media business, announcing Monday that it’s selling the unit for $5 billion to private equity firm Apollo Global Management.

Verizon yahoo writedown