The old robber: why Verizon buys Yahoo

Loud deal to buy Yahoo the mobile operator Verizon for $4.8 billion has given rise to many articles about how Yahoo was once, what opportunities are missed and what mistakes made Marissa Mayer, which has recently been the main clever and beautiful Silicon valley.

Indeed, eight years ago Microsoft was in fact offered for the same business is almost ten times more. And she Yahoo had the opportunity to absorb Google and Facebook when they cost a few billions. But Yahoo managed to buy a share in Alibaba and Yahoo asset in Japan is more expensive than the us Internet business. In General, based on the comparison value of the shares of Alibaba and Yahoo Japan with the cost of just Yahoo, the Internet business, which was sold to Verizon had a generally negative value. In principle, the loss-making business with declining indicators and should cost. So selling for $4.8 billion, a clear success of Yahoo shareholders. Especially because Marissa Mayer at the beginning of the year actually threw the white flag, putting Yahoo up for sale.

Probable dismissal Marissa with a Golden parachute of $50 million, I think, will do her the bitterness of defeat. But I in this story are more interested in not looking into the past, and the current attempt of Verizon to change the course of history. It’s time to mention another spectacular blonde, this time a top Manager Marni Walden, Verizon, started the whole story and having a great chance to head to Verizon in the near future.

Cellular operators for the last 2 decades has evolved from a super-profitable and growing businesses in the pipeline along the stretch of the content of social networks and messengers. Once the phone manufacturers wanted to produce a co-branded phones from operators, and now they are totally dependent on Google. Leading cellular operators in the United States are still profitable and have the support of investors, but they future is very bleak. Facebook and Google are constantly testing different methods of content delivery from satellites and balloons to the peer-to-peer Wi-Fi networks. Not the fact that the markets of the future connected car (car interactive), ioT (Internet of things) and big data (big data) will not go past the mobile operators, although it would seem they are the main beneficiaries.

Verizon in the face of Marni Walden has created in its structure a unit that challenges the market, contrasting the content search, social networks and instant messengers. Let me remind you that Verizon is already part of the giant AOL, which is composed of several powerful content producers like the Huffington Post or Techcrunch. After the merger of 204 million monthly “uniques” Yanhoo 166 million and AOL, even taking into account intersections, Verizon will become the leader in audience in the US, slightly ahead of Google and way ahead of Facebook. It’s only on content, without ignoring the 140 million owners simkart.

Yahoo has long been famous inability to effectively monetize its audience, unlike Google, for example, but here to the aid can come bundle with the operator. In addition, we must not forget that AOL owns the largest U.S. advertising network, and Yahoo is the second largest. Google Ad Network is only in third place. Verizon management is not recognized, what’s the strategy behind these purchases, but billions of dollars are not spent just. Think Verizon took a swing at a fundamentally deeper use of data operator for the targeting, including location, daily routine and many of the factors that we may not even guess.

Operators have detailed data about their customers, which would envy Google with Facebook, but they do not know how to use them. And advertisers are willing to pay “two counters” for super-targeting. For example, the global giant of the market of soda for the championship of Europe on football preparing your mobile advertising campaign with a very high payment for CPA (cost per action — RBC), but app developers had to obtain permission from users to retrieve data from the microphone of the smartphone. Advertising was supposed to be activated only at the time when the user watched a football match on TV and used the app.

In the face of Verizon in the US market appears “big brother”, which for traffic data about users and advertising opportunities at the moment, significantly ahead of the giants in Silicon valley. If the old man in the face of Verizon and joined them Yahoo and AOL will be able to create a system of super-targeting, which will significantly increase the effectiveness of advertising, it will be a worthy response to all the young giants of the startup industry. Real restitution. Another thing is that the probability of such a turn is hard to believe, all so accustomed to the fact that the youth always wins in the technological race. But the fact that the purchase of Yahoo means the start of another round of competition, I don’t think Facebook and Google will sit idly by.

In the Russian market, by the way, there is a similar ferment, of course, on a smaller scale. Mobile operators are seriously engaged in analysis of big data, but not yet ripe for expensive purchases Internet companies, although trying to get on their clearing, Yandex is looking for sources of offline data, social networks penetrate deeper into everyday life. All need more data to better predict user needs. It can make the life of the average person very convenient and unbearable at the same time.

The authors ‘ point of view, articles which are published in the section “Opinions” may not coincide with ideas of editorial.