[eMarketer] US telecoms dump media businesses for 5G

In what points to the next frontier for competition and battle for customers, US telecoms are pivoting from traditional media business to investment in expanding their 5G network foothold.

This as the media business becomes less competitive and rewarding to the telcos.

Just recently, Verizon announced plans to sell its media unit consisting of AOL and Yahoo to private equity firm Apollo Global Management for $5 billion. The company has bought AOL and Yahoo at $4.4 billion in 2015 and $4.5 billion in 2017, respectively as quoted by eMarketer.

AT&T also made public its intentions to merge WarnerMedia business with Discovery as it looks to concentrate on growing its 5G network in a deal that will see AT&T receive $43 billion in cash and bonds.

This arrangement coming three years after AT&T acquired Time Warner for close to double that price.

These latest developments are inspired by the telcos looking to increase capital expenditure to expand their 5G infrastructure and services.

Read the full eMarketer article here

www.emarketer.com

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