Verizon’s Go90 Leverages Earlier Acquisitions
Verizon's Latest Competitive Moves in the Wireless Space
Go90 and other capabilities
In this series, we’ll look at some product updates of Verizon Communications (VZ).
In the recent Bank of America Merrill Lynch 2015 Media, Communications & Entertainment Conference, John Stratton, EVP and President of Operations at Verizon, talked about Go90, Verizon’s OTT (over-the-top) offering. Stratton highlighted that the company’s previous acquisitions of upLynk, EdgeCast, OnCue, and AOL would contribute to the capabilities of Verizon’s Go90 engagement model.
Stratton said that “beginning with the acquisitions of CDN technology, ad insertion technologies, the ability for us to develop our own protocols for formatting video for use on multiple screens, certainly the ad technology that was at the heart of our AOL acquisition, the Millennial Media acquisition we just recently announced, all of these technology enablers provide us with routes to market for critical capabilities as this business transforms itself from a broadcast to a one-to-one engagement model.”
Meanwhile, both upLynk, a multi-device video encoding service, and EdgeCast, a content delivery network, boosted Verizon’s capabilities to distribute video content efficiently. OnCue was an internet TV service of Intel Corporation (INTC), which Verizon acquired in early 2014. According to the company, AOL’s content, as well as advertising capabilities, will be utilized in the Go90 service.
Millennial Media acquisition
On September 3, 2015, AOL signed an agreement to buy Millennial Media (MM) for a per-share price of $1.75—to be paid in cash. Millennial Media is reportedly set to further boost Verizon’s capabilities in targeted advertising to smartphone customers.
Go90’s trial by users
According to a report by Reuters, the Go90 service is being tested on a trial basis since September 8, 2015.
Instead of investing in Verizon’s stock, you may consider taking a diversified exposure to Verizon by investing in the iShares Russell 1000 ETF (IWB). The ETF held ~0.9% in Verizon on August 31, 2015.
Alternatively, you may consider the iShares MSCI USA Minimum Volatility ETF (USMV). USMV held ~1.4% in Verizon at the end of August.
In the next part of this series, we’ll look at Go90’s positioning in the fast-growing US mobile video space.
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