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Is Verizon’s New Business Model in Jeopardy?

Aaron Levitt Oct 05, 2016

With wireless subscriber growth basically flatlining and landline usage falling off the map, the major U.S. telecoms have had to look elsewhere for growth. For AT&T (T ), that meant diving head first into providing bundled cable services via a buyout of DIRECTV. For Verizon (VZ ), that meant completely changing its business model.

VZ went hard after various web properties to become a digital advertising giant. The combination of the web properties with Verizon’s own huge subscriber network meant plenty of opportunities for cross-selling. Its new model meant potential for huge profits, revenues and cash generation over the longer term, as mobile internet really gets cooking.

There was just one problem – Yahoo! (YHOO ) couldn’t build a firewall to save its life.

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