Executives from CNN, ABC News, E.W. Scripps, Gray and Yahoo say the 2020 election provides them an opportunity to build on the audiences surges they’ve seen on their streaming platforms since the pandemic.
Can two once-great Internet behemoths come together harmoniously in an age of mergers, roll-ups, and distribution plays? The early returns suggests that Oath — the corporate marriage of AOL and Yahoo — has some work cut out for itself.
The former Today show host and CBS Evening News anchor will be concentrating on production work for the time being. A representative for Couric said Friday she turned down an opportunity for a short-term contract extension at Oath, formerly Yahoo.
Yahoo today said it completed the sale of its operating media business to Verizon Communications for approximately $4.48 billion. As previously announced, on June 16, the remaining part of Yahoo will change its name to Altaba Inc. Verizon will combine Yahoo with AOL properties to create Oath. Yahoo’s search business, along with other advertising assets and portals, now belong to Verizon.
Verizon wants to become a strong third choice for advertisers by adding Yahoo’s popular sites and billion users worldwide to its own media business, which includes AOL and Verizon’s home-grown go90 video service. It can place ads on those sites, and can also combine data from visitors to those sites with AOL’s ad technologies and sales teams, and possibly also personal data from Verizon mobile customers such as location and other information, in order to better target ads at individuals.
According to sources, layoffs are expected to take place across AOL and Yahoo that could number up to 1,000 jobs. That is less than 20% of the combined company, according to sources. This action is not unexpected, given that both companies have a lot of redundancies, including in human resources, finance, marketing and general administration.
The beleaguered company’s failure is a sign of what’s to come for many ad-based websites.
Verizon Communications will create a new company called Oath after it completes its $4.5 billion acquisition of Yahoo and melds the troubled internet company with its AOL operations.
Yahoo released a succession plan Monday for when the company’s core search and advertising assets transfer to Verizon. Yahoo board member Thomas McInerney will serve as CEO and Alexi Wellman will fill the CFO position after Yahoo completes the sale.
Verizon’s willingness to accept some of the lingering risks from Yahoo’s security breaches underscores the wireless carrier’s desire to become a bigger player in the digital advertising market. Google and Facebook currently dominate, but Verizon believes there’s room to grow.
Verizon Communications is close to a renegotiated deal for Yahoo’s internet properties that would reduce the price of the $4.8 billion agreement by about $250 million after the revelation of security breaches at the web company, according to people familiar with the matter.
Yahoo spent millions of dollars to hire media all-stars like Katie Couric, Joe Zee and David Pogue. So what’s going to happen with them now that Yahoo is being swallowed up by Verizon? The short answer is, they don’t know. And if Verizon knows, it’s not telling yet. But several staffers say that they expect cutbacks.
The sale announced this morning marks the second time in two years that Verizon has snapped up the remains of a fallen internet star as it broadens its digital reach. The nation’s largest wireless carrier paid $4.4 billion for AOL last year. Verizon had emerged in recent days as the front-runner for the beleaguered internet company.
Though the Internet giant managed to beat Wall Street’s expectations, Yahoo said its revenue fell 19% from a year earlier, while its loss widened to $440 million. The company also reported Monday that it’s writing down $482 million in charges related to the declining value of social media site Tumblr.
Verizon, long considered the front-runner in bidding for Yahoo’s core internet business, has been bested, though by whom and how much remains unknown according to an unnamed source. Yahoo will be putting together a new shortlist of bidders in the coming days.
The Wall Street Journal reports the deadline for second-round bidding was Monday night, and Verizon, the leading contender, laid down $3 billion. Private equity firm TPG was also expected to bid, though it’s uncertain what other first-round bidders were following through. At least one more bidding cycle is expected. Journal subscribers can read the full story here.
Add Twitter to the flock of bidders who have circled Yahoo. Jack Dorsey’s struggling social network met with Yahoo’s management, led by CEO Marissa Mayer, several weeks ago to discuss a possible merger of the companies, sources tell the New York Post.
Katie Couric is considering leaving Yahoo, which is looking to sell itself to a yet-to-be-named buyer. While company execs have been buzzing that the media superstar is preparing to announce that she’s departing after 2½ years as a global anchor at Yahoo News, sources close to Couric say she will wait to find out who buys the struggling tech giant.
Verizon plans to make a first-round bid for Yahoo’s web business next week, and is willing to acquire the company’s Yahoo Japan Corp. stake to help sweeten the offer, according to people familiar with the matter. Google, the main division of Alphabet Inc., is also considering bidding for Yahoo’s core business, a separate person said.
Sarah Ellison provides a portrait of Yahoo in its hollowed-out decline, having overplayed its hand in CEO Marissa Mayer’s zeal to be a media juggernaut. Yahoo once wanted to be both a media and tech company, she writes, though in the midst of a sale, “the product side seems to be winning.”
Yahoo and the National Hockey League entered a partnership today to deliver live, out-of-market NHL games for free on Yahoo. Best yet for cord-cutting puck fans, there will be no cable subscription or authentication required.
Facebook, Amazon, Verizon and Yahoo (at least in a perfunctory gesture) have all submitted bids to the NFL for the rights to stream up to 18 regular season games. Apple, however, doesn’t think the draw is strong enough to set its Apple TV box apart from the rest, and is abstaining.
Yahoo’s announced the loss of around 1,700 jobs and a cataclysmic refocusing of its website. But Katie Couric, the glitzy Global News Anchor for the embattled Web portal, still plans to wait and see what happens to the company, a source close to the journalist says.
Viewers will be able to watch original video from Time Inc. on Web sites controlled by Hulu, Yahoo, and Zealot Networks, thanks to new distribution agreements between the publisher and these digital video platforms.
As Yahoo considers selling its core Internet business, its $10 million investment in Katie Couric is coming under scrutiny as a lackluster move. There’s uncertainty over how many video views Couric has garnered, but the math suggests that the revenue from ads tied to them isn’t close to making up for her salary. Couric was initially a major coup for CEO Marissa Mayer as part of a move to expand original content.
The Wall Street Journal reports the fate of troubled Internet portal Yahoo Inc. may be decided in a marathon series of board meetings this week. Yahoo’s board will discuss whether to proceed with a plan to spin off more than $30 billion in shares of Alibaba, find a buyer for core business, or both, sources say. WSJ subscribers can read the full story here.
There were a few glitches, and viewership was well below what the average TV game delivers. But it got a lot of sampling and opens up a lot of possibilities for the future.
The game, between the Buffalo Bills and Jacksonville Jaguars, will be streamed free globally on Sunday morning. More than 30 advertisers will present spots during the game. Yahoo did not reveal the cost of the ads, but a Toyota marketing exec said it was comparable to the price of commercial time on traditional televised NFL games.
Katie Couric is renewing her news deal with Yahoo, which sources said will raise her annual package there from upwards of $6 million to $10 million. A spokesman for Couric confirmed that the well-knowm news anchor would be continuing with Yahoo, but neither he nor Yahoo would give additional specifics about the deal or about Couric’s compensation.