Verizon Pushing Forward in Possible Acquisition of Yahoo, Reports Say
Verizon has reportedly brought in the CEO of its AOL division, who is friendly with Yahoo's CEO, to look into the pursuit of Yahoo.
Verizon continues to be interested in potentially acquiring Yahoo for the 1 billion people who use its email, finance, sports and video services; its broad online content offerings and its heavy Web traffic. The mobile carrier upped its pursuit by recently enlisting the help of the CEO of its AOL unit to research its strategy, according to a report. Tim Armstrong, CEO of AOL, which Verizon owns, has been given "a leading role" in exploring a possible bid for Yahoo, according to a Feb. 8 story by Bloomberg that is based on reports from an unnamed source who is familiar with the matter. Verizon "hasn't hired bankers to conduct an offer and there have been no formal talks, according to the person, who asked not to be identified because Verizon's plans haven't been made public," the story reported. "Still, as Yahoo sorts out its strategy, Armstrong is taking a lead in preliminary discussions, the person said." The wireless carrier, which already has about 112 million subscribers, wants to potentially combine Yahoo into its corporate umbrella to drive growth for its go90 streaming video service, the article reported. Yahoo's Web traffic and its exclusive content "is just what Verizon needs to secure a foothold in video advertising against YouTube and Facebook serving a mobile phone-addicted generation," the article continued.
Armstrong has known Yahoo CEO and President Marissa Mayer for many years, according to the report. Both Armstrong and Mayer were executives at Google before leaving to join Verizon and Yahoo. Armstrong even talked with Mayer previously about a possible Verizon acquisition or partial purchase back in 2014 at a media conference in Sun Valley, Idaho, another source told Bloomberg. "This was a year before Verizon acquired AOL and when Armstrong was exploring a deal to combine the two former Web portal giants."