The Verizon-Yahoo deal in the US might be a surprise to most, but could be pointing a new strategy that Caribbean telcos could adopt?
Those who keep an eye on tech news in the United States (US) would be aware that global tech firm, Yahoo Inc., had been under performing for a number of years, and as we had highlighted in a recent post, it had been trying valiantly to turn its fortunes around. However, earlier this week, 25 July, broadband Internet and wireless communications firm, Verizon Communications Inc. (Verizon), announced that it intended to acquire Yahoo!’s operating business for USD 4.8 billion (Source: Verizon).
As indicated above, Verizon is one of the top telecoms firms in the US, having evolved from Bell Atlantic, and initially AT&T Corporation. It is ranked the 13th top US firm by Fortune, and has 173,300 employees in 2,700 cities, in 150 countries (Source: Verizon) . Further, in 2015, it had annual revenues of USD 131.6 billion, and a net income of USD 17.87 billion.
While the takeover of Yahoo! was not necessarily a surprise, the purchaser was, as there had been speculation that other firms were interested. However, through the sale, Verizon, a formidable and global telecom business, will be acquiring a formidable and global Internet business, which is especially popular for its web portal, its email and messaging services, along with its news services, to name a few.