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Verizon CEO Lowell McAdam on Why They Paid $5 Billion for Yahoo acquisition:

Stashed in: Yahoo!, @marissamayer, Verizon, Comcast, Awesome, Cognitive Bias

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To compete with Google and Yahoo in mobile ads and video ads:

By acquiring Yahoo's operating business, we are scaling up to be a major competitor in mobile media. Yahoo's operations provide a valuable portfolio of online properties and mobile applications, which attract over 1 billion monthly active consumer views," McAdam said during Verizon's earnings call Tuesday.

More specifically, McAdam said the deal will help Verizon become a bigger player in digital video, a segment he estimates to be worth $180 billion by 2020. He pointed out that market is currently owned by two companies (Google and Facebook), but people are "hungry for alternatives."

"Verizon intends to be a significant player in this space," he said.

Among Yahoo's assets, Lowell was particularly upbeat about its content services, including Yahoo Sports, Finance, and News. In fact, he says he's already spoken with the commissioners of the NFL and NBA about a Verizon-owned Yahoo and how to expand its offerings together. 

He also sees Yahoo Finance as its "strongest asset today" and plans to find more partnership opportunities with AOL's existing publications like TechCrunch and Huffington Post.

"Going forward, this acquisition will put us in a great position as a top global media company and give us a significant source of revenue growth for the future," he said.

Even Comcast is collecting personal data to compete in the ad business.

So Verizon paid $5 per monthly page view of some "mobile properties" not even worth listing.

My understanding is that they mostly paid for the ad technology and ad businesses.

Those page views just came along as part of the deal.

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