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Verizon Emerged As Favorite Bidder For Yahoo
April 26, 2016 by admin
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Verizon Communications Inc is the clear favorite in the fast approaching bid for Yahoo Inc’s core Internet business, according to Wall Street analysts, in large part because the telecommunications company’s efforts to become a force in Internet content have gone relatively well under the leadership of AOL Inc Chief Executive Tim Armstrong.
Verizon acquired AOL last June for $4.4 billion – its first big foray into the advertising-supported Internet business – and it is not yet clear how well the unit is performing financially. Subsequent moves, including the takeover of much of Microsoft Corp’s advertising technology business, a deal to buy Millennial Media for about $250 million and the recent launch of the mobile video service go90, are also too recent to assess.
Yet analysts have given the big phone company high marks for allowing AOL to operate independently and folding in other recent acquisitions without much drama. And they said Armstrong seems to be driving Verizon’s recent moves in go90 and recent acquisitions.
“The management puts a lot of faith in Armstrong,” BTIG analyst Walt Piecyk said.
That faith derives in part from the belief that Armstrong did a good job at left-for-dead AOL, especially in assembling a strong set of products to deliver targeted digital ads to customers.
Combining AOL and Yahoo, an idea that has come up many times over the years, could instantly make Yahoo a major player in Internet advertising, with Armstrong – one of the world’s top ad executives – at the helm, analysts said.
Armstrong “has good M&A experience, and a pretty solid ad tech stack,” B. Riley & Co analyst Sameet Sinha said.
Verizon’s hands-off approach that has worked with AOL, though, might not be suitable if the far-bigger Yahoo were taken over. With Yahoo’s struggling business, “the luxury of autonomy is simply not there,” Recon Analytics analyst Roger Entner said.
Verizon, AOL and Yahoo declined to comment.
Source- http://www.thegurureview.net/aroundnet-category/verizon-emerges-as-favorite-bidder-for-yahoo.html
Microsoft Drops Ad Business
July 13, 2015 by admin
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Microsoft Corp that it will hand over its display advertising business to AOL Inc and sell some map-generating technology to ride-hailing app company Uber, as it scales back on unprofitable operations.
The moves mean Microsoft will focus on its growing search advertising business based on its Bing search engine, and displaying maps on its Windows devices rather than generating the maps themselves.
Microsoft, which employs hundreds of people in its display ad business around the world, said those employees would be offered the chance to transfer to AOL and that it was not making any layoffs.
The world’s largest software company no longer breaks out results for its online operations, chiefly its MSN web portal and Bing, but they have lost more than $10 billion over the past five years. Chief Executive Satya Nadella has said Bing will turn a profit next fiscal year.
“Today’s news is evidence of Microsoft’s increased focus on our strengths: in this case, search and search advertising and building great content and consumer services,” saidMicrosoft in a statement.
Under a 10-year deal struck with AOL, now a unit of Verizon Communications Inc ,AOL will sell display ads on MSN, Outlook.com, Xbox, Skype and in some apps in major countries. As part of the deal, Bing will become the search engine behind web searches onAOL starting next year.
Microsoft also struck a multi-year extension to its existing deal with AppNexus, which provides the tech platform for buyers to purchase online ads.
Microsoft and Uber did not disclose financial terms of their deal, under which Uber will take over the part of Microsoft’s mapping unit that works on imagery acquisition and map data processing. Uber will offer jobs to the 100 or so Microsoft employees working in that area, according to a source familiar with the deal.
Will AOL Merge With Yahoo?
October 18, 2011 by admin
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AOL is trying to engineer a merger with Yahoo in order to lower costs.
AOL’s CEO Tom Armstrong reportedly has been working hard to generate support from shareholders for a deal with Yahoo. According to Reuters, Armstrong is presenting the deal as an alternative to going it alone as an internet media company in order to reap cost and advertising reach benefits.
Apparently Armstrong is claiming that a merger with Yahoo, which itself is at the centre of acquisition rumours, would bring in savings of between $1bn and $1.5bn by combining datacentres and consolidating content on areas such as news, sports, entertainment and finance.
Since AOL was spun out of its disastrous merger with Time Warner, the firm has been trying to remake itself into an internet media company by buying popular websites such as The Huffington Post and Techcrunch. While many question whether that is a workable plan, the financials can’t mask the deep trouble AOL is in, with the company reporting a $11.8m loss for the second quarter.
While talk of AOL being bought up has cooled considerably in the last few months, the firm still has a few worthwhile assets. According to Reuters’ sources, shareholders like the idea of merging with Yahoo but are not convinced that Armstrong can pull it off.
Microsoft To Overhaul Hotmail
Microsoft will debut next month a major overhaul of its Hotmail webmail service, with upgrades across the board, including in areas like spam, security and performance.
“We listened. We learned. We reinvented Hotmail from the ground up,” reads an invitation sent on Friday to journalists for press events to be held on Oct. 3 simultaneously in New York and San Francisco.
“Forget everything you thought you knew about Hotmail. Just don’t forget this date,” reads the invitation.
Hotmail’s primary competitors are Google’s Gmail and Yahoo Mail. The last time the consumer webmail market got a product jolt was in 2004, when Google surprised the world with Gmail and its then-unprecedented amount of email storage.
At that point, innovation in webmail services had stagnated for years but Gmail shook Microsoft, Yahoo and other webmail providers like AOL out of their comfort zone, as they quickly responded by increasing the size of their email inboxes.
AOL Launches Professional Division
May 19, 2011 by admin
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AOL Inc is launching a professional division called AOL Industry on Monday geared towards capturing the government, energy and defense executives attention.
The idea is to bring the use of social media, video and design from consumer-oriented sites and apply it to media for business professionals.
“(Trade media) hasn’t done as good a job at innovating as consumer media,” said Jay Kirsch, vice president and general manager of AOL Industry, who pitched the idea to AOL at the end of last summer.
“If you look at most of the innovations that have really changed media most of them have been consumer facing and not business-to-business.”
AOL Energy rolled out first and will be followed by AOL Government and AOL Defense in June. AOL Industry is not charging a subscription for access and will not have a print component.