To: Hans( Mr. Vestberg? Boss ?)
RE: An Epic opportunity
We wanted to jot down this memo to slope a transaction that have been able to remake Verizon’s lucks in the media business.
Every major carrier and internet provider has ventured out a huge piece of real estate properties in the presentation nature with the exception of Verizon( the parent of TechCrunch’s parent company ). Over the past few years, all countries of the world of presentation has been turned upside down by the $71.3 billion acquisition of 21 st Century Fox by Disney; and before that it was the $84 billion deal that impart Time Warner and its resources under the AT& T umbrella.
New players like Netflix, Amazon and Apple opened a opening into the wide world of moneymaking that awaited prevail presentation stages based in technology — or adjacent to engineering programmes. And let’s not is starting on YouTube, which created whole new genres of leisure and an entirely new celebrity-making machine.
Verizon has made a couple of attempts in the content space for dollars and eyeballs. There was the costly$ 1 billion go90 pot — Quibi knows it’s hard out there for a mobile-first network play. And only slices of the Verizon Media Group( the company formerly known as Oath, which was formerly known as Yahoo-AOL) are even focused on presentation — it’s largely news, over here.
Even in the current wildly intrusive context, there is an opportunity for Verizon to craft a new narrative for itself in the presentation seat. As you no doubt know, the advancement by acquisition sport is a tough one to play cleverly. Integration has rates that go beyond money and concentrates is key in times like these. But there is one bet that we just can’t shake might be the excellent one for Verizon to prepare: Epic Games.
Epic is already in the market looking for cash at a valuation above $15 billion, which, opened what tribes have was used for other( bigger but no less buzzy owneds) would be a steal.
Why Epic Games? Well, it’s the company behind Fortnite, the game that every parent has learned to love( when their kids are playing it) and hate( when their minors are representing it too much ). The tournament is more than a simple novelty, however; it’s a messenger, a gathering place and a language of communion for the next generation of portable customers. You know, the minor who may think of Verizon the way that I thought of IBM back when I was their age: Big, important, but something that sits in the background and does, well, whatever.
Microsoft bought Minecraft recently, and somehow hasn’t bolt that up. Fortnite is like Minecraft, but for older boys! And( we recollect) it’s bigger! Bigger adolescents are also the type that spend bigger fund. Future Verizon patrons, I reckon.
This isn’t to say that Verizon Media Group isn’t doing well. We actually ought to have, lately( yeah !) — but if we stacked Fortnite next to all our other work, we’d be sizzling shit. Everyone passions hot shit! Travis Scott simply did a concert in Fortnite; what if he had just done one in Fortnite, Powered By Verizon?
We know that Verizon’s down with what the streamer kids are up to these days, because you exactly partnered with Faze Clan on a benefit event.
Not only that, but think about all the network demand that Verizon could create by making Epic Games’ Fortnite pervasive. Hans, boss, Mr. Vestberg, sir … Verizon could POWER THE METAVERSE. And the metaverse is gonna need a lot of 5G infrastructure, we’d imagine.
We haven’t even talked about the fact that Epic’s game engine is still a thing very. That’s another possible root of value!
Anyway, thanks for all that you do and for borrowing another $3.5 billion recently to boost our aggregate corporate liquidity. Let’s get it on again, but like eight experiences this is something that, and buy ourselves some Fortnite skins. Like, all of them.
Shiebs and Alex
please don’t fervor us