>> Yahoo is ending it's tortured sale process and announced it has a buyer in Verizon, which is going to plunk down $5 billion. What's in it for Verizon?>> I'm Jennifer Saba, a columnist with Breakingviews. It's unclear what Verizon is going to get from this deal. T-Mobile, Verizon's competitor, was poking fun at it earlier in the process, saying that it was going through a mid-life crisis.
After picking up Yahoo, and they're adding it to AOL, you kinda have to wonder why are they collecting these 1990s internet properties? Yahoo has a boatload of users. They have properties like Yahoo News and Sports and that seems what Verizon wants, but it's unclear if they're gonna make anything work with this.
Verizon is betting that it could take AOL and Yahoo and turn it into a challenger to both Google and Facebook. This is gonna be an uphill challenge because both Google and Facebook command more than 50% of the U.S. digital advertising market. Yahoo and AOL collectively have less than 5%.
Investors also think this is gonna be a challenge because Yahoo today has been trading down a couple of percentage points. Verizon's been flat, nobody thinks so far that this is going to be the big challenger to Google and Facebook. History suggests that bet probably won't pan out.