Verizon CEO Hans Vestberg isn't ready to ditch the telecom company's media unit, but he tells Axios it will have to make money without leveraging data from the company's wireless and wireline subscribers. Why it matters: This is a sharp departure from the company's original premise for buying Yahoo and AOL: that Verizon could use its detailed data on subscribers to take on Google and Facebook, which together dominate digital advertising. In an interview with Axios, Vestberg says the former AOL and Yahoo businesses "need to survive on their merits." "We're not trying to mimic a Facebook or Google. We don’t think that's the right way to do that." — Hans Vestberg By the numbers: Verizon doesn't break out the profitability of its media business, but it said in November that the unit wouldn't meet its goal of becoming a $10 billion-a-year business by 2021. He has already started making other changes. Late last year, Vestberg implemented a strategy he calls "Verizon 2.0." The effort includes: Why? The changes are designed to help the company fully take advantage of the next generation of cellular technology. 5G is just starting to reach consumers, but over time has the potential to create whole new lines of business. One area where Verizon still has room to improve, Vestberg notes, is to take a more active role in the businesses that are built using its high-speed connections.
Verizon CEO Vestberg has said that the firm’s media unit, formerly Yahoo and AOL, will have to flourish without the use of data from the company's wireless and wireline subscribers. The statement is a marked turnaround from the stance taken by the company when buying the businesses, when it explained the purchase by saying Verizon could use the comprehensive data on subscribers to gain an edge on Google and Facebook.