Telecommunications leaders Verizon have spent billions to acquire AOL and Yahoo, once the two biggest companies on the internet. If you haven’t guessed, the Verizon net worth is incredibly high.
In the early 2000s, buying internet leaders AOL and Yahoo! would have set you back $364 billion. Telecommunications company Verizon has since bought both companies at a combined cost of $9.23b.
Yahoo! and AOL aren’t quite the forces that they once were. However, with the might of the United States’ biggest mobile coverage provider behind them, investors will be confident that they can regain some of their lost value.
For Verizon, the sites will provide a platform to increase their revenue through the mobile advertising market. Verizon is now set to take 4.5% of the digital ad market, with a user base of over 1.4b.
Verizon is already the United States’ leading mobile coverage provider. However, their revenue has been surpassed by AT&T, who made $163.8b in 2016, compared to Verizon’s $126b. Their recent buys should help them to close the gap on their fierce rival.
The AOL and Yahoo! purchases may seem like a big deal, but those outlays were small change compared to some of the acquisitions that Verizon have made in the past.
Verizon’s three biggest acquisition deals
Verizon paid out $28.1b to buy Alltel in 2008, which saw them overtake AT&T as the US’ biggest telephone provider. Prior to the sale, Alltel served 13 million customers, 12.2m of which joined Verizon.
Bell Atlantic acquired rivals GTE in a $64.7b deal in 2000. The companies merged to become Verizon. After closing the deal, Verizon controlled a third of the US market.
The biggest deal in Verizon’s history involves a company that they already owned. 2014 saw the phone company pay out $130b to Vodafone to purchase their 45% stake in Verizon Wireless.
What is the Verizon net worth?
Given the amount of money that Verizon have spent over the years, it won’t come as a surprise that they are among the highest ranking companies for annual revenue.
A healthy turnover (of more than $100b each year) attracts the interest of wealthy investors. As a result, the Verizon market cap currently stands at $188.7b.