Quips: Networked Economy Models Emerge Should Verizon Gain Approval To Acquire AOL

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The Content, Network, And, Arms Dealer Come Together With Merger

Verizon Buys AOL
The planned acquisition of AOL by Verizon for $4.4B is more than just the acquisition of the programmatic ad platform.  Verizon is making the big shift to disrupting digital businesses for a few reasons:

  1. Shift from selling products and services to delivering brand promises.  In order to deliver on their brand promise they need to deliver at the smallest increment of an ad. This requires new programmatic ad technology that Verizon doesn't have nor can they scale up on their own.
  2. Enter the battle for mass personalization at scale. The goal - deliver continuity of experience across ubiquitous channels.  Using context from location data, role, relationship, time, sentiment, and business process.  The additional context signals improve the ability to deliver on right time relevancy.
  3. Build on the content strategy at Huffpo and TechCrunch.  Use content and context to improve audience segmentation and targeting.  AOL brings a rich trove of content that can be used to drive audience.

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Bottom Line: Verizon Wants To Build A Verticalized Network Economy

Successful digital businesses will trade on identity and trust.  This is the new future where the content (Huffpo), network (Verizon) and arms dealer/ technology (AOL) come together.  Only four consumer companies have the assets to put together the full networked economy model.  Amazon and Apple have perfected this model.  Google and Microsoft have the pieces but have not yet figured out how to put it together.
For Verizon, they will need more acquisitions to achieve greater digital scale.   Expect more acquisitions in technology and content as Verizon brings strength in the network.

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