Verizon Case Analysis
Synopsis of “Verizon calls time on Yahoo by buying it”
Introduction
In the article “Verizon calls time on Yahoo by buying it” written by Business and finance (2016), Verizon seems to be a savior and a winner, for taking on the brave move to buy Yahoo, in order to save the company further turmoil and decline in e-commerce business success. Former Google executive, Marissa Mayer’s effort to resuscitate the previously great Pioneer of the Internet, failed in the attempt. As smartly noted in Gwartney, Macpherson, Sobel and Stroup’s (2013) text, it is very important that economists in today’s business market, try at best to avoid violation of the ceteris paribus to avoid drawing the wrong conclusion. Although expectations were set high for Ms. Mayer’s …show more content…
“In the four years preceding Ms. Mayer’s arrival. Yahoo churned through three chief executives” (Business and finance, 2016). In the coming of the Yahoo’s decline, while Ms. Mayer was chief executive, she underestimated how difficult it would be to fix the issues facing the company.
Conclusion
In opposition, now that Verizon has taken on the company’s baggage, they believe that they can turn the company around. Along with the purchase of Yahoo, Verizon bought AOL for $4.4 billion and “will be able to cut costs by merging its operations with those of Yahoo” (Business and finance, 2016). Furthermore, the deal combines part of a larger trend that deals with consolidating within the business of the Internet. We can only tune in to see how this new move will do, whether it will be a success, or fall short like previous attempts. Nevertheless, let us hope Verizon and Yahoo see
Introduction
In the article “Verizon calls time on Yahoo by buying it” written by Business and finance (2016), Verizon seems to be a savior and a winner, for taking on the brave move to buy Yahoo, in order to save the company further turmoil and decline in e-commerce business success. Former Google executive, Marissa Mayer’s effort to resuscitate the previously great Pioneer of the Internet, failed in the attempt. As smartly noted in Gwartney, Macpherson, Sobel and Stroup’s (2013) text, it is very important that economists in today’s business market, try at best to avoid violation of the ceteris paribus to avoid drawing the wrong conclusion. Although expectations were set high for Ms. Mayer’s …show more content…
“In the four years preceding Ms. Mayer’s arrival. Yahoo churned through three chief executives” (Business and finance, 2016). In the coming of the Yahoo’s decline, while Ms. Mayer was chief executive, she underestimated how difficult it would be to fix the issues facing the company.
Conclusion
In opposition, now that Verizon has taken on the company’s baggage, they believe that they can turn the company around. Along with the purchase of Yahoo, Verizon bought AOL for $4.4 billion and “will be able to cut costs by merging its operations with those of Yahoo” (Business and finance, 2016). Furthermore, the deal combines part of a larger trend that deals with consolidating within the business of the Internet. We can only tune in to see how this new move will do, whether it will be a success, or fall short like previous attempts. Nevertheless, let us hope Verizon and Yahoo see