After a lengthy saga of bidding Verizon acquires Yahoo at $4.83 billion. This includes Yahoo’s content, search, mobile and advertising activities. Verizon already owns AOL, so everyone’s looking forward to some earth-shaking changes. Hopefully, the sale marks the beginning of a new era for Yahoo.
THE PLUS SIDE OF VERIZON-AOL-YAHOO CORPORATE SYNERGY
When you want to put two and two together to make 5 or even 10, that’s synergy! The purpose of an acquisition is to join 2 forces to get a combine power that is far greater than 4. With Verizon’s acquisition of Yahoo, the positive effects will be:
- Streamlining their processes by eliminating duplication of processes,
- Combining technologies to provide enhanced web and mobile services,
- Acquiring skilled workforce of Yahoo,
- Sharing distribution channels for their combined goods and services.
WHAT ARE THE CONCERNS NOW THAT VERIZON ACQUIRES YAHOO?
Marissa Mayer in her press release has predicted a very positive future after the Verizon-AOL-Yahoo combine. The acquisition will bring together Verizon’s mobile technology AOL/Yahoo’s search, email, video conferencing, social and advertising technologies under one roof. But when Tim Armstrong of AOL mentioned the words collective synergies, it was bound to make the workforce of Yahoo feel jittery. In the present situation there are some worrisome questions that will arise, like:
- What happens when there is conflict in corporate culture between the three merged giants?
- Is there guarantee that some Yahoo employees will not lose their jobs?
- Will there be a major reshuffle of staff duties and responsibilities following the consolidation?
Yahoo is a pioneer in web portals and search engine technology. Let us hope that the three combined entities are able to bring about a revolutionary change in Internet and mobile technology without drastic changes in the workforce.