The news that Verizon had won the bidding war to purchase Yahoo originally broke in mid-2016, but it wasn’t until June 2017 that the sale was actually finalized and Verizon officially took control of the one-time internet giant. There is no doubt that the purchase of Yahoo has the potential to be hugely beneficial for Verizon as the company seeks to further expand its reach and influence.
However, there is still the question of how Verizon’s acquisition will affect Yahoo’s millions of users. In particular, many people are worried about what effects the sale might have on their continued ability to play Yahoo Fantasy Sports. With this in mind, we’ll now take a closer look at the sale to see how it might impact the millions of Yahoo Fantasy Sports players.
From Yahoo to Oath: The Past and Future of the One-Time Internet Giant ‘Oh, how the might have fallen.’ This quote from the Bible couldn’t be more appropriate when discussing Yahoo. After all, this is the same company that in 1998 turned down the chance to buy Google for a mere $1 million. The company eventually realized its mistake a few years later, which culminated in its attempt to buy Google for $3 billion in 2002. Unfortunately, Google wanted $5 billion and Yahoo was unwilling to meet this valuation.
Only a few years later in 2008, Microsoft then approached Yahoo officials and eventually bid $40 billion for the company, which Yahoo promptly turned down. This obviously turned out to be not so smart of a move, considering that less than ten years later Yahoo was finally sold to Verizon for only $4.8 billion. Despite numerous attempts to reinvent itself, Yahoo was never again able to reach the heights of the early 2000s, and it was only a matter of time before some other company stepped in to take over.
Following its announcement in 2016, Verizon officially purchased Yahoo earlier this year and now plans to combine Yahoo with AOL—which Verizon bought for $4.4 billion in 2015. After finalizing the purchase of Yahoo, Verizon announced that it plans to combine it with AOL under the new name Oath. As part of this new company, many of Yahoo’s services will now be re-branded under the new Oath name. This has led many Yahoo Fantasy Sports players to worry about how the merger will affect their ability to continue playing in their old leagues.
The Future of Yahoo Fantasy Sports
Verizon announced that it was planning to re-brand most of Yahoo’s services under the new Oath name. However, as one of Yahoo’s most popular services, Yahoo Sports is not being re-branded and instead will continue to operate under the old name. This should come as great news to anyone who regularly plays Yahoo Fantasy Sports, as it means that your username, password and any fantasy sports leagues you participate in will remain the same as always.
Although users can now access Yahoo Sports under the new Oath homepage, Verizon has no plans to do away with any of the traditional access paths or web addresses. This means that anyone who wishes to access Yahoo Sports can do so in the same way as they always have, or they can choose to access it via a link on the Oath.com homepage.
Yahoo Fantasy Sports have long been one of the company’s most profitable ventures. As of 2015, the company was already generating more than $200 million a year from its fantasy sports products. Even if it was still a distant third among fantasy sports sites, behind FanDuel and DraftKings, the fact remains that Yahoo Fantasy Sports were always extremely popular. In this sense, it is not so surprising that Verizon took the decision to retain the Yahoo Fantasy Sports name instead of re-branding it under the new Oath name.
Prior to the purchase, there were already people predicting that Yahoo Fantasy Sports was perfectly poised to take over from FanDuel and DraftKings to become the leader in fantasy sports, and it seems that Verizon is also set to have this same goal of turning Yahoo Fantasy Sports into the leading fantasy sports service. The fact that Yahoo is already such a household name should definitely help it to potentially achieve this goal. At the same time, Verizon can now use its huge customer database to push its Yahoo Fantasy Sports products in an effort to draw in new users and potentially generate new revenue streams.
Of course, the fact that the sale of Yahoo was only recently finalized means it is far too early to tell whether Verizon will be able achieve its goal of turning Yahoo Fantasy Sports into the industry leader. Nonetheless, with the fantasy sports market already worth well over $4 billion a year and continuing to grow, it would seem that Yahoo Fantasy Sports doesn’t necessarily need to overtake FanDuel and DraftKings to be considered a success. In fact, even a slight increase in Yahoo Fantasy Sports’ market share could generate enough profits for Verizon to fully cover the cost of its purchase of Yahoo within the next decade or two.
Still, fantasy sports fans probably won’t care too much about whether Verizon’s purchase of Yahoo turns out to a smart financial decision. Instead, all that they will care about is that the purchase won’t affect their ability to continue to play Yahoo Fantasy Sports. In this sense, the sale of Yahoo probably won’t have much of an effect on the average person.