One of Verizon Media Group’s crown jewel, media network Huffpost, is going for the sale. This was reported by the Financial Times last night. After acquiring AOL in 2015 for $4.4 billion, Verizon have been strategizing in dropping media properties.
Tim Armstrong, previously the chief executive rose as the architect for media telecommunications and advertising stratagem with the help of the deal.Armstrong envisioned to gather numerous real state online as possible and consecutively create an intricate advertising architecture altogether to target clients on the basis of media consumption which again they would be the sole owner.
Much like Facebook and Google who were surveying their users on the basis of their interest and browsing history, Verizon was following the same idea in reaching ad platforms with the provision of a broad-based competitor. Facebook and Google have benefited through their comprehensive study of online users standing as a distribution gateway for media corporations and users allowing redistribution of their videos and articles concurrently fishing out the ad fund that previously went to the same media companies.
Verizon continued their acquisition of multi-billion dollars by paying Yahoo $4.5 billion in 2017.Now Verizon is regretting this multi-billion dollar purchase. Their initial expense on Yahoo was for Tumblr, a social networking site which in 2013, Yahoo acquired for $1.1 billion.
Tumblr was sold this year by Verizon for a luxury apartment in Manhattan for $3 million. This was a warning sign for other former tech and media properties owned by the company.During the peak of media investments, Vice was worth $5.7 billion, but Disney gave away all its shares of the company early this year. Verizon declines to comment on speculations and rumors, stated the Financial Times. Both Huffpost and Verizon media have declined requests for a comment on the matter.