Verizon's Digital Content Play

According to multiple sources, telecom giant Verizon is in talks to acquire Yahoo as part of a larger play to compete with major digital content players like Netflix, Amazon, Google and Facebook. And while Verizon does not have any experience in the content-creation realm, they have an abundance of resources to devote to the vertical, and access to millions of customers via its broadband lines and wireless spectrum. EVP Marni Walden has been tasked with developing a media revenue stream worth $5 billion a year, which will originate under the Verizon-owned AOL (and Yahoo if they purchase). According to TechCrunch, "Like AOL, Yahoo is relatively affordable for Verizon. Plus, Yahoo's 600 million monthly mobile users would provide Verizon with a useful shortcut to the ad revenue that large audiences enable-if (and it's a big if) Verizon were able to find a way to right Yahoo CEO Marissa Mayer's slow-motion capsize."