Verizon Partners Concerned About Consumer-Focused Acquisitions

Verizon’s $4.83 billion acquisition of internet giant Yahoo has some of the carrier’s channel partners wondering whether the company’s consumer-related acquisitions will distract Verizon from its core voice and connectivity services.

Verizon confirmed the deal after months of speculation, and it follows the purchase of AOL in 2015. Verizon will buy Yahoo’s media, search and communications assets.

The acquisition comes at a time where some partners would like to see service providers focusing on cloud solutions and next-generation technologies, instead of spending resources on the integration of another internet giant.

At the same time, some partners don’t fear the worst because they don't believe that the AOL acquisition impacted business services.

A Verizon spokesperson told CRN that the acquisition has no effect on its "continuing commitment to its business customers."

A day after the deal announcement, Verizon reported its 2016 second-quarter earnings. During the call, Verizon CEO Lowell McAdam said the acquisition will make Verizon "a stronger competitor in digital media."