Verizon is a front runner in the communication technology industry and with the addition of Yahoo, the organization will able to connect millions of people on multiple platforms that deliver and converge components of the digital world from media, telecommunications and online advertising. With vast capabilities and brand recognition, the new Verizon should be prepared to grow its business and mission to become the top competitor in the industry. Some opportunities include gaining more market share in the digital advertising industry, financial growth, ventures in the video streaming industry, and diversification in the ecommerce retailing industry. The digital advertising sector is already dominated by Google and Facebook, whom encompass the majority of the $60 billion market in the United States alone thus Verizon have the potential to break through in industry, and compete with the rivals with capabilities of Yahoo, and existing AOL mass media subsidiary …show more content…
A part of the reason is that Verizon’s dividends at a rate of 4.2%, is far more profitable than government bonds, the US, at a rate of a mere 1.8%, and countries such as Germany, Japan and Switzerland where there are negative return rates (La Monica, 2016). Importantly, the global economy seems to be slowing down, and due to the Brexit, the UK stock market has been negatively impacted and the currency has dropped, leaving shareholders, craving stocks that yield a high return (Hunter, 2017). In the essence, the acquirement of Yahoo could stimulate the stock market and make room for new technological advancements which fundamentally increases product excellence, which in turn translate to higher market