Verizon Wireless is looking to launch an over-the-top (OTT) content delivery service following its acquisition of Yahoo, according to Lowell McAdam, Chairman and Chief Executive Officer of the largest mobile service provider in the United States. While speaking at Global Technology, Media and Telecom Conference organized by J.P. Morgan earlier this week, McAdam reiterated Verizon's plans to merge Yahoo's core business with its AOL division into a new unit called Oath, adding that the consolidated firm's platform will be used to launch an experimental version of a new OTT service. The Big Red's top executive didn't clarify on the matter and it's currently unclear how the service would differ from the Go90 and whether the company is interested in releasing a premium content delivery platform with a subscription business model.
McAdam on Monday echoed some of Verizon's previous comments on the purchase of Yahoo's Internet business, asserting that Yahoo and AOL are serving 1.3 billion users worldwide and will continue expanding their footprint in the future. While it's possible that the New Jersey-based telecom giant is looking to launch a global OTT service, that scenario still isn't likely and the company is expected to continue focusing on its domestic market for the time being. Once operational, Oath will be led by Tim Armstrong, the current CEO of AOL, Verizon previously confirmed, adding that Yahoo CEO Marissa Mayer won't be joining the company's management. Armstrong recently hinted at the possibility of Verizon launching a competitor to Sling TV and similar services, without providing concrete details on the matter. Like all other major wireless carriers in the United States, Verizon is currently in the process of diversifying its business portfolio in an effort to solidify its revenue stream and consequently ensure long-term sustainability of its operations.
McAdams confirmed that Verizon's purchase of Yahoo is scheduled to be completed next month, specifically by mid-June, meaning more details on the company's plans for Oath should follow soon. The transaction is valued at around $4.5 billion, $350 million less than it would have been had Yahoo not went through a set of hacking scandals in late 2016 after which Verizon decided to push for a discount on the acquisition.