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Verizon Still Ad Laggard to Google, Facebook After Yahoo Deal

"Verizon Communications Inc. is about to double the size of its toehold in digital advertising with the purchase of Yahoo! Inc. Even so, the wireless company will still be a distant No. 3 behind Google and Facebook Inc. in the $187 billion market. Verizon could announce an agreement to buy Yahoo’s internet business for about $5 billion in the next few days, according to people familiar with the situation. A deal would advance Chief Executive Officer Lowell McAdam’s plan to make Verizon a powerhouse in mobile media... 'The idea that buying Yahoo somehow positions Verizon to compete against Google and Facebook is laughable,' said Jonathan Chaplin, an analyst with New Street Research LLC. Unlike its superiority as a wireless carrier, 'its Yahoo and AOL businesses are the complete opposite,' he said. 'There are no barriers to entry and it is extremely fragmented and competitive.'"

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