uploads///Telecom Verizon Q Oath Revenue

How Verizon’s Oath Business Could Be an Expansion Opportunity


Apr. 16 2018, Updated 7:12 p.m. ET

Verizon acquires Yahoo’s core properties

Last year, Verizon (VZ) completed its $4.5 billion acquisition of Yahoo’s core Internet properties after 11 long months of uncertainty, two data breaches, and extensive negotiations. Yahoo assets were combined with AOL’s, which were acquired by Verizon for $4.4 billion in 2015 to create a new online media and advertising subsidiary called Oath.

In 4Q17, Oath generated $2.2 billion in consolidated total revenue, an increase of ~10% sequentially. This growth was primarily driven by higher advertising spending during the holiday season, according to the company. Agreements with sports organizations such as the NFL (National Football League) and NBA (National Basketball Association) could be a positive for Oath’s business, driving viewership and desirable mobile content.

Oath properties position Verizon to expand its addressable market from millions of wireless and wireline customers to billions of global content consumers. Additionally, Oath anticipates growing its annual revenue from $7.0 billion to $10.0 billion–$20.0 billion by 2020.

Article continues below advertisement

Verizon optimistic about digital media

AOL and Yahoo assets complement each other, with Yahoo adding tremendous technical capability and AOL offering great sales and ad-tech capability. With intense competition in the traditional US wireless market, Verizon is striving to be a key digital advertising player like Facebook (FB) and Alphabet (GOOGL).

Check out all the data we have added to our quote pages. Now you can get a valuation snapshot, earnings and revenue estimates, and historical data as well as dividend info. Take a look!


More From Market Realist

  • Honeywell sign
    Earnings Report
    CNBC Pro Stocks to Buy Before Q1 Earnings
  • Men walking by Morgan Stanley headquarters
    Morgan Stanley’s (MS) Stock Forecast Before Q1 Earnings
  • Carnival cruise ship sailing
    Carnival's (CCL) Stock Forecast Before Q1 Business Update
  • GameStop store
    GME's Earnings Are Coming: Will It Be Mayday for Shorts or WallStreetBets?
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.