Verizon is buying Yahoo for $4.8 billion per ArsTechnica.
Those assets will form part of a new publicly traded company that will be spun out of Yahoo as a separate business. It’s unclear who will head up that firm, however.
Verizon CEO Lowell Adam said: “Just over a year ago we acquired AOL to enhance our strategy of providing a cross-screen connection for consumers, creators, and advertisers. The acquisition of Yahoo will put Verizon in a highly competitive position as a top global mobile media company, and help accelerate our revenue stream in digital advertising.”
Yahoo will be thrown into the mix with AOL—also a faded Internet star that burned brightly in the ’90s.
The business will be steered by Verizon’s Executive VP Marni Walden, the company said.
Yahoo CEO Marissa Mayer—in a carefully worded statement that made no mention of her future at the company once it joins AOL in the Verizon fold—said:
Verizon plans to announce today the arrival of the iPhone. But, the scenario not quite perfect as everyone thought it would be. Verizon plans to run the iPhone 4 on its ‘3G’ network, and not on the faster ‘4G’ network. It’s disappointing if you ask me. To make matters worse, the timing of it is not quite so ideal. Let me explain.
The next generation of iPhones, the iPhone 5, will probably be released later this summer. It would be nice if the iPhone 5 coincides with Verizon release later this month, but we all know that will not happen. Can Verizon wait until summer? One problem. Rumor has it that Verizon will not have access to the iPhone 5 until the end of the year, which gives AT&T a six month advantage.
I’m sure Verizon’s executives are not happy with this scenario. But, they don’t really have a choice, it’s either release it now or at wait until the end of the year. And waiting until the end of the year is not really an option. So, reports of the demise of AT&T, in terms of losing million of users to Verizon, is far from becoming reality.
Come to think of it, maybe it’s the deal that Apple wanted with both carriers. It was really meant to be this way. It satisfies both carriers, without sacrificing the other.
Will the iPhone finally come to Verizon near you? This rumor has been circulating for years. Is it finally coming true? I can’t believe, that it has been 3 1/2 years since the iPhone was introduced with AT&T as sole partner in June 2007. How time flies. Apple and Verizon plan to announce on Tuesday the new partnership. No details yet. No plans. No prices. I guess we will find out more about it on Tuesday.
Based on early analyst estimates, Apple will likely add 9 to 12 million new iPhone users on Verizon’s network. The figure will probably equal the number of iPhone units sold via AT&T this past year, estimated to be around 14.5 million units. Does this mean iPhone users will double in 2011? By the looks of it, based on estimates, it probably will.
Will see a max exodus of AT&T users switching over to Verizon? Probably not. After all, it’s not always easy to get out of a contract. Remember, AT&T increased the early termination fee to $325 last year and $10 extra for each month. People would think twice before getting out their current contract. In addition, AT&T also cut the iPhone 3GS phones from $99 to $49 last week. I think AT&T will be fine.
Verizon will sell the iPad starting October 28. The iPad will be bundled with Verizon Mifi 2200 Hotspot and using Verizon’s 3G service at $60/month.
What about the iPhone? No word yet, but I’m sure it’s coming.
The iPad will be available in 3 models. I break them down in price: $630, $730 and $830. Somehow, I still get sticker shock seeing these prices.
See details here.
I’m not exactly sure what the next version of the Magic Jack will be called, but the latest iteration of the popular phone device has a feature that will make the Magic Jack device work with cell phones. It basically works like a mini cell tower. The Magic Jack device recognizes cell phones within 8 feet. You punch in a special code and it connects your cell phone with the Magic Jack. You can then place unlimited calls via internet for free. The new Magic Jack works with any GSM phone from AT&T and T-Mobile. The bad news is most phones from Verizon and Sprint will not work.
Borders and Verizon have signed an agreement to offer free Wi-Fi in 500 of its stores. This came in the heels of Barnes & Nobles and AT&T’s announcement earlier this summer to provide free Wi-Fi service in its stores. The Borders and Verizon service will be available by mid-October. Access to the Internet is nearly ubiquitous if you add AT&T’s DSL package. AT&T allow their DSL customers have gain access to thousands of AT&T’s hotspots located worldwide at Starbucks, McDonalds, participating hotels, restaurants and airports.
I’m one of the 2.2 million customers of Vonage, the telecommunications company that offers telephone services through the internet. Verizon has sued Vonage for infringing over five of its patents. A jury earlier this year awarded Verizon $58 million in damages and ordered Vonage to stop using its technology. Vonage is currently working on an alternative, but raises concerns if it’s able to meet the deadline.
Majority of the company’s $607.4 million in revenue last year came from charging customers with monthly subscription fees of about $25. How’s the market responding? Not good. Vonage has lost more than $720 million since going public, $338.6 million from last year alone. The company’s stock priced at $17 in the IPO last May has plummeted down to more than 80 percent at the close yesterday at $3.31.
I hope the best for Vonage since I like their service. The price is perfect at $25 per month. What’s the alternative? Well, Comcast offers $39 for existing Comcast cable and high speed internet users. It’s $55 per month if you just want Digital Voice service alone. Comcast does offer a promo for $33 dollars each for the three services of television cable, high speed internet and telephone service for a grand total of about $99 per month. Then, there’s always AT&T’s landline.