The company has saved $2.3 billion so far through 2018.įios revenue grew 2.5% when excluding the impact of new revenue recognition standards, thanks in part to adding 54,000 net Fios internet connections. Verizon says it is on track to generate $10 billion in cumulative cash savings by 2021, a goal set in 2017, in order to fund dividend payouts. Verizon Media announced earlier this month that it was laying off 7% of its employees, impacting about 800 workers.Ĭapital expenditures were $2.3 billion in the fourth quarter, bringing full-year capital spending to $16.7 billion. The company recognized a $4.6 billion goodwill impairment charge related to Verizon Media. Verizon Media revenue fell 6% to $2.1 billion, but was up sequentially due to seasonality. On a GAAP basis, Verizon posted net income of just $2 billion, or $0.47 per share, due to the writedown. The company also added 11,000 tablet connections and 556,000 other connected devices, mostly wearables. Verizon reported 1.2 million retail postpaid net additions in the fourth quarter, including 873,000 postpaid smartphone net additions. What happened with Verizon Communications this quarter? The transaction, which is expected to close in the second half of 2021, also includes the sale of Techcrunch, Engadget and Ryot.Retail postpaid average revenue per accountĭata source: Verizon. The next iteration requires full investment and the right resources,” he said. “Verizon Media has done an incredible job turning the business around over the past two and a half years and the growth potential is enormous. Hans Vestberg, Verizon’s CEO, expressed confidence that Verizon Media will “take off in its new home.” “Apollo has a long track record of investing in technology and media companies, and we look forward to drawing on that experience to help Yahoo continue to thrive.” “We are big believers in the growth prospects of Yahoo and the macro tailwinds driving growth in digital media, advertising technology and consumer internet platforms,” said David Sambur, senior partner and co-head of private equity at Apollo. The new service offered one unlimited, no-contract plan for $39.99/month.Īccording to Verizon, the sale of its media assets, the latest development in the saga, will usher in the opportunity to “aggressively pursue growth areas and stands to benefit its employees, advertisers, publishing partners and nearly 900 million monthly active users worldwide.” More recently, Verizon attempted to transition Yahoo into Yahoo Mobile, a wireless provider that works on Verizon’s network. Oath was then renamed Verizon Media Group. Around the time of Armstrong’s departure from the company, Verizon announced a $4.6 billion write-down of Oath assets, citing competitive pressures in the digital ad business. In 2017, Verizon merged AOL and Yahoo into a new media company called Oath, led by Tim Armstrong, AOL’s CEO at the time. While the short-form blogging platform performed well in its early days, it was soon outpaced by competitors like Facebook, Instagram and Snapchat. Auttomatic, the parent company of WordPress, bought Tumblr for a mere $3 million, a crushing drop in value from the $1.1 billion Yahoo paid for it years ago. Last year, the carrier sold HuffPost to BuzzFeed and in 2019, it unburdened itself of Tumblr, a once-promising social media platform that the carrier acquired when it purchased Yahoo. Prior to this recent announcement, Verizon had already been distancing itself from some of its more troublesome media assets. The new company, to be called Yahoo, will continue to be led by Guru Gowrappan, Verizon Media’s CEO, and the carrier will retain a 10% stake in the company. Now, after a number of asset reconfigurations, iterations and transformations, the company is selling these assets to Apollo Global Management and related entities for $5 billion. Verizon CEO: ‘Verizon Media will take off in its new home’Īnyone who has followed the storyline of Verizon’s media assets knows that it’s been a somewhat rocky, convoluted journey, beginning with the carrier’s purchase of AOL for $4.4 billion in 2015, and then Yahoo for $4.5 billion in 2017.
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