Verizon Focuses On Oath's Media Growth

Verizon Communications still isn’t interested in acquiring linear TV businesses -- but its other content has growth potential.

“Linear TV is nothing we are looking at,” said Hans Vestberg, CEO, Verizon, the big telecom company, speaking at the Goldman Sachs Communacopia Conference this week.

Verizon’s content division Oath -- which includes Yahoo and AOL -- is a likely place for Verizon to grow content.

Vestberg added: “We have our own content, of course, when it comes to Oath, basically have what we call ... super channels from finance, entertainment, news, the home. All are creating a great possibility for us.”

Oath’s annual revenue is at $7 billion right now, according to estimates, with a goal of growing to $10 billion by 2020. Verizon said earlier this week Tim Armstrong, CEO Oath, would be departing.

When it comes to content -- including partnering with linear TV companies -- Vestberg says: “You are going to see us working differently, basing it on our fundamentals, which is the network for our customers and our distribution.”



Major competitors such as AT&T and others have heavily invested in TV content. AT&T just competed a $85.4 billion deal for Time Warner, with includes Turner ad-supported TV networks and HBO. AT&T already owns satellite TV provider DirecTV.

Earlier this year, Lowell McAdam, former chairman-CEO, Verizon -- now executive chairman, in speaking with Yahoo Finance, said: “The linear model is dead. ... It’s just going to take a long time to die.”

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