Washington – The news about yahoo acquisition by Verizon has long been a widely talked gossip during this 2016. On July 2016, Verizon Communication finally took Yahoo for USD 4.8 billion. According to the agreement, after the acquisition Yahoo will be joined with AOL; Verizon’s another acquired technology company.
The acquisition is in line with the mission of Verizon to become a world biggest mobile media company. As the information, the acquisition value is below of Microsoft had ever proposed to Yahoo in 2008 which was 44,6 billion; a huge amount of acquisition if it is compared with 2016’s acquisition value by Verizon. For the strategy, the Yahoo chief, Marissa Meyer will still be in Yahoo although the acquisition has been done and Yahoo has been joined with AOL service. “I love Yahoo and I trust all of you. It is important for me to witness Yahoo to enter the new chapter”, said Marissa Meyer which is quoted from her email to her staffs.
But the question rises about the fate of the Yahoo customers. As the acquisition has been executed, there are many question marks regarding of the status of the Yahoo customer in the hands of Verizon. Associated Press who interviews Marissa Meyer said that Verizon will still use the name of “Yahoo”. As Yahoo is the second biggest email customer in United States, and is more popular in Europe and Latin America, Verizon will still consider using Yahoo as the name of their product especially for Yahoo Mail. This means that Yahoo Mail’s customers should not change their email’s name and they can still use Yahoo email’s name and as the additional service, Yahoo mail customers now can enjoy the AOL service. AOL also will increase the capacity and attachment in Yahoo Mail. This additional service is proposed by Verizon in order to increase its competitiveness with its other giant mail company; Google Mail.
The bad news is that the acquisition will have an impact to the content division in Yahoo. Verizon will close the content division such as Yahoo Health, Yahoo Real Estate, and other five content divisions. As the consequence, Yahoo will only provide Yahoo Finance and Yahoo Sports as quoted from The New York Times.
Today Yahoo only gains 3 percent of global market share for advertisement revenue. If it is compared in 2000, Yahoo gained for about USD 125 billion for its advertisement revenue. The development of other competitors such as Hotmail and Gmail impacts Yahoo’s global market share and it affects Yahoo’s global revenue so that the Verizon finally decides to save the company.