In the search of alternative revenues the country’s largest wireless carriers have pivoted beyond their traditional businesses with the acquisition of AOL, Yahoo, and DirecTV etc. The acquisition of Yahoo for $4.8 billion is the latest.
The financial result of the 2nd quarter shows that AT&T Mobility has a 2.1% decline to $17.9 billion from the last year same quarter. Verizon’s AOL acquisition in 2015 has not flourished yet. And AT&T’s revenues went up by 22.7%. This increase in revenue is due to the acquisition of DirecTV in 2014. Lowell McAdam, CEO of Verizon said that the complimentary value of AOL and Yahoo integration with the company.
While the merger of DirecTV only has benefited AT&T as it provide service for all screen formats. Acquiring both AOL and Yahoo makes Verizon a complete wireless service provider for internet. These two companies are also trailing from IoT technology alongside the revenue from the other companies they acquired.
Both AT&T and Verizon collect their maximum revenue from selling wireless service and investing the profit into growth areas likely Internet of Things and digital ads.
Verizon might charge a premium for the digital ads as it can now deploy them to the highly targeted global customer base and not only limited to the US market.