Verizon was clearly interested in doing something great. Rather, they did it the wrong way. They knew that buying Yahoo was a risky proposition. However, they did take the risk, intentionally, just to increase their customer base.
After all, who wants to be at the bottom list in this rat race! The prime objective was quite clear. They were very much interested in acquiring Yahoo, despite knowing that the existing users of Yahoo are angry, with the massive data breach. And Yahoo, meanwhile, was looking for someone to cling onto. This is precisely when Verizon stepped in.
Since buying Yahoo, Verizon has faced some major issues. Its own Oath is underperforming and is not quite able to attract users. By merging Yahoo, the guys at Verizon might have thought that it will increase the number of users and this will benefit Oath as well. However, the plan backfired and there seems to be no other way out.
Does it mean that Verizon will lose its credibility?
As of now, there is no such serious crisis to boot. The credibility of Verizon still remains intact. But there will be a negative impact as well.
•For instance, the existing users who are angry might not be forthcoming, when it comes to using the services of Oath.
•The investors will surely want to ROI – which under the circumstances do not seem likely.
•No new users to show, which will hurt Verizon and this also means less revenue.
•Verizon will continue to survive, but it will take some time to get their actual investment. The account ledger will have nothing to show in the profit margin.
•Will have to look for other areas for growth and expansion.
In the meantime, the Yahoo hacking incident is only growing by the day. Yahoo since its merger is free from any such compulsions. Hence, it is Verizon, who has to come clean and formulate a strategy to move forward.
Verizon begs to differ and is still upbeat
Verizon is surely trying to have an online presence on the lines of Facebook, Google, and Amazon. A sizeable presence in the online market will certainly help them to generate enough revenues. But it is also necessary for them to have a realistic plan in place. No, the company is not going to earn its millions overnight. It will be a slow and painful process, in which they have to take some hard decisions. Despite all the negative feedback, there is still room for them to succeed.
At a time, when everyone is looking at the Digital Domain, the competition is bound to heat up. However, if Verizon tries to downsize its portfolio and make a conscious attempt to revamp itself by shedding the existing identity, there is ample reason to remain upbeat. Overall, the company’s attempt at reducing the losses and sustaining revenue by expanding its growth online might help to strengthen its core business.