Site Map Icon
RSS Feed icon
 
CWA Local 2336
 
 
September 26, 2020
Member Login
Username:

Password:


Not registered yet?
Click Here to sign-up

Forgot Your Login?
RED on Thursdays

Why Wear RED on Thursdays? 

Click here

Members Rights
"If the discussion I am being asked to enter could in any way lead to my discipline or termination or impact my personal working conditions, I ask that a union steward, representative or officer be present.  Unless I have this union representation, I respectfully choose not to participate in this discussion."
<< September 2020 >>
S M T W T F S
1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30
Events Calendar image
Events Calendar
Message Board image
Message Board
Classified Ads image
Classified Ads
Downloads image
Downloads
News Feeds image
News Feeds
Photo Gallery image
Photo Gallery
Weather Report
UnionActive Newswire
 
Join the Newswire!
Updated: Sep. 26 (03:08)

In Case You Missed It
Teamsters local 570
In Case You Missed It
Teamsters Local 355
In Case You Missed It
Teamsters Local 992
Covid 19 Return To Work Agreement
IATSE Local 488
Protecting Our Pensions
Teamsters Local 455
The Union Sportsmen's JournalHas Gone Digital
Brotherhood of Railroad Signalmen
 
     
Why Verizon wants to buy Yahoo
Posted On: Apr 08, 2016

Yahoo's business has been doing so poorly that if you take the company's overall market value and subtract the value of stock Yahoo owns in two Asian internet companies — Alibaba and the independent company Yahoo Japan — you get a negative number.

In other words, Yahoo is less valuable than the sum of its parts. And for tax reasons, it doesn't make sense for Yahoo to sell off its Alibaba and Yahoo Japan shares. Instead, Wall Street has been pressuring Yahoo to sell the actual company — the business that operates the Yahoo website and services like Flickr and Tumblr, but not the shares — to a third party.

That plan looks like it's getting closer to fruition. Today, Bloomberg reported that telecommunications giant Verizon is planning to make a bid for Yahoo — in effect combining it with AOL, which Verizon purchased last year. Google is also weighing a bid, according to Bloomberg, while AT&T and Comcast have decided not to make an offer.

Verizon buying Yahoo would look a lot like Verizon buying AOL

AOL has a lot in common with Yahoo. Both companies are well-known internet brands whose best days are a decade or more in the past. Like AOL, Yahoo makes a lot of its money by creating internet content and selling ads against it.

When Verizon purchased AOL, it emphasized the company's portfolio of media brands, including TechCrunch and the Huffington Post. But as Matt Yglesias wrote for Vox last year, Verizon may have also been interested in AOL's ad technology business — and in particular how Verizon could use data gathered from its vast broadband and mobile networks to help AOL content companies target ads more effectively.

Either way, if Verizon was happy with its AOL acquisition, buying Yahoo, a company with a similar portfolio of technology, media, and advertising products, seems like a logical next step.

In recent years, scale has become increasingly important in the online advertising business. Advertisers prefer to make a few big ad deals rather than many small ones, so larger media companies are often able to command premium prices. With Yahoo and AOL under one roof, Verizon would be able to integrate their ad sales teams and offer advertisers packages that include media brands from both companies.

Yahoo would make Google stronger where it's already strong

The big downside to a Verizon acquisition is that Verizon is not known for nurturing software innovation. And while conventional media properties like Yahoo Sports, Yahoo News, and Yahoo Finance are important parts of Yahoo's portfolio, the company also has popular software products like Yahoo Mail, the Yahoo search engine, and Tumblr. These parts of Yahoo would be an awkward fit at Verizon, and they might have trouble recruiting and retaining the top-tier engineers they need to keep them on the cutting edge.

The other rumored bidder, Google, has essentially the opposite strengths and weaknesses. The tech behemoth knows all about managing software products and ad networks. Being acquired by Google would provide an immediate morale boost for Yahoo's technical talent, and might help Yahoo recruit and retain good programmers in the future.

That said, Yahoo's content business would be an awkward fit at Google, which prefers to act as a platform for other people's content rather than a creator of content in its own right.

Acquiring Yahoo would allow Google to bolster its position in markets — search, email, ad networks — where Google is already a leading player. Indeed, that might be a good reason for Google not to acquire Yahoo: Making its already dominant search and advertising divisions even more dominant might invite unwanted attention from antitrust regulators.

And with Yahoo's software products in an apparent death spiral, it may be only a matter of time before Google is able to attract many of Yahoo's users to Google's own platforms anyway.

by


Organize Today
Learn more about organizing your workplace!

Click Here
CWA Economic Justice and Democracy

Act Now!

Tell Congress to pass Paid Sick and Family Leave for ALL workers NOW!  To complete the form, click here.

We need Protective Equipment Now - Healthcare and other essential workers are on the front line of the COVID-19 crisis.  You can take action by signing the petition, click here.

Contact Elected Officials!
Newsletter Sign-up
Sign-up for newsletter & email updates
Blog Topics
General
Important Links
CWA
National AFL-CIO
Union Plus
Union Built PC
DotComPrinting.inc
 
 
Communications Workers of America Local 2336
Copyright © 2020, All Rights Reserved.
Powered By UnionActive™
Visit Unions-America.com!

Top of Page image