After Verizon Communications Inc, which owns media brands like Yahoo, AOL and social media site Tumblr, declared its media properties nearly worthless last year with a US$4.6 billion write-down, the division of the U.S. telecoms giant is resurrecting the businesses as an antidote to the cesspool of the internet. "I want to build something that you'll 100per cent trust," Verizon Media Chief Executive Guru Gowrappan said in an interview last month.
Verizon Media hopes to avoid the same scrutiny faced by its peers, who struggle to stem fake news and violent videos, by focusing on high quality, professionally produced content and products.The cornerstone of Gowrappan's plan is to diversify Verizon Media's revenue, which mainly comes from advertising. His goal is for revenue to be split evenly among advertising, subscriptions and e-commerce transactions within five years, but subscriptions may take a little longer than planned.
He explained how users will be able to buy products straight from ads that show up in Yahoo Mail without being redirected to the retailer's website. That concept will be expanded across other Verizon Media sites including the ability to buy products within advertising displays, he said.To court those advertisers and e-commerce partners, Verizon Media needed to clean up its image and present itself as a safe place on the internet.
Verizon ended the search for buyers for Yahoo Finance recently, the sources said, and the Yahoo brand is positioned to become a main driver of Verizon Media's growth plans. The challenge for Verizon Media is to emerge from the shadow of Google and Facebook's dominance of online advertising and contribute more than a pittance in revenue for Verizon.
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