Digital Content

Apollo Global Management agreed to pay about $5 billion to acquire Yahoo and AOL from Verizon as the wireless company exits its ill-fated foray into the media business. The private-equity firm is paying $4.25 billion in cash for a 90% share of the media assets. Verizon will keep a 10% stake and $750 million of additional preferred stock in the new company, called Yahoo, that will be formed to operate the business. Verizon Media, which mostly struggled to grow against Alphabet's Google and Facebook, generated $7 billion in revenue in 2020.

The behaviors of platform and social media companies have evolved under the heat of the spotlight. Regulation takes time, and a lot of hearings, to produce tangible results. One upshot of four years of high-profile hearings is that tech companies now know how to play the game. Sometimes the goal isn't to pass a law. Congress uses the bully pulpit to force companies to self-regulate.

Comcast continues to shift its emphasis from being a cable TV company to being a digital company. Comcast has: 19 million cable subscribers, a loss of 491,000 since December; 31 million broadband internet subscribers; a gain of 461,000; and 42 million sign-ups to the streaming platform Peacock, a jump of 9 million. Comcast sells something that has proved more durable than sports and entertainment: broadband, the piping that carries all streaming platforms. In the first quarter, sales increased 12 percent, to $5.6 billion.

Nearly every major social platform has recently introduced some form of tipping, allowing users to directly support their favorite personalities in real time. The popularity and availability of payment platforms such as Venmo, CashApp and Stripe are making it easier for tech companies to enable peer-to-peer payments on their platforms. For creators, getting money from users directly is critical because platforms are not financially incentivized to pay out most people directly.

Around the world, governments are moving simultaneously to limit the power of tech companies with an urgency and breadth that no single industry had experienced before. Their motivation varies.

California’s 2018 net neutrality law, SB-822, recently went into effect and concerns have been already raised about the legality of “zero-rating,” the practice by which commercial arrangements and unilateral decisions by network operators are exempted from consumer pricing. Under California’s net neutrality law, zero-rating and sponsored data programs violate the new law because certain content cannot be excluded from consumer data caps, or usage-based pricing. Turner Lee offers the following recommendations to state and federal leaders:

California’s net neutrality law, which a federal district court upheld in February, is already wading into the regulatory morass that brought down past regulatory regimes charged with maintaining neutrality in rail transport and energy.

House Commerce Committee Republicans, led by Committee Republican Leader Cathy McMorris Rodgers and Communications and Technology Subcommittee Republican Leader Bob Latta, sent a letter urging Acting Federal Communications Commission Chairwoman Rosenworcel not to impose stringent net neutrality regulations, which could result in Americans losing their internet offerings. Almost immediately after California enforced its new net neutrality law, two Internet providers reportedly told the Department of Veterans Affairs (VA) that the law could force them to end arrangements with US wireless carr

A group of leaders with direct lines to the Biden administration—including Common Sense Media’s Jim Steyer, former Gov. Deval Patrick (D-MA), and former Education Secretary Margaret Spellings—is launching a commission that will assemble a “blueprint” for a comprehensive tech policy agenda under President Biden, with a focus on soliciting input from people inside as well as outside DC. There’s still a ton we don’t know about where the Biden administration will come down on issues at the heart of the tech industry, like privacy and Section 230 reform.