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Verizon Enters Search Business with Yahoo Takeover

By July 27, 2016 June 26th, 2019 No Comments

The search industry is looking forward to some big changes of late, as Yahoo moves into new hands. Verizon, the US telecom giant, is buying the company for £3.68 billion. The new owner company is also said to enter into ad deals with Google and Microsoft. The takeover covers almost all Yahoo assets excluding Yahoo Japan, Alibaba shares and some other assets.

New Changes

This is going to have some impact on the search industry. Currently, Yahoo has a global search market share of 7.68%. AOL, another search business owned by Verizon, is expected to be merged with Yahoo.

Verizon currently uses AOL for majority of Microsoft’s ads on both sides of the Atlantic. The ads cover:

  • Display ads
  • Video ads
  • Mobile ads

The access to Gemini will give Verizon access to a new platform – mobile search!

Wireless Carrier Plus Internet Property

Yahoo may not have as big a market share, but it is still third in the list of largest internet properties in the United States. Google and Facebook are the two other companies.

Verizon is going to benefit big when it enters the market of digital advertising and content distribution.

Yahoo User Base

The most valuable thing that Verizon will acquire is the Yahoo user base. Yahoo may not be as big as Google, it still commands a reach of over a billion monthly users. There are over 600 million active mobile users too.

What is leftover, Alibaba shares and Yahoo Japan, will change name after the takeover.

Yahoo will continue to operate in the current form until the beginning of 2017, when the deal will reach its completion. So you can expect that not much change will come to any Yahoo advertising program until next year.

Some reports claim that Verizon is set to relieve Yahoo’s CEO Marissa Mayer in a £38 million package, but others say she’s going to remain with the company. Mayer is the first to officially report the deal in her post. She has been behind many big changes at Yahoo over the years, including streamlining of Yahoo interface more recently.

Do you think your ad campaigns will be affected in any way due to the deal? It will be best to get the help of an expert to evaluate your campaigns. Visit X for more information and to get the support of a specialist.