What’s next for 5G & Huawei - China VS The World
Huawei is a Chinese technology and telecommunications company, who specialises in designing, developing, and selling telecommunications equipment and consumer electronics, mainly mobile telephones. The company's roots trace back to its founding in 1987 by Ren Zhengfei. The company's initial aim was to focus on manufacturing phone switches however it has expanded its focus and expertise to include, building telecommunications networks, providing operational and consulting services and equipment to corporations inside and outside of China, and manufacturing communications devices for the wider consumer market. The company has around 18% of the market in its grasp, ahead of Apple and other companies alike.
The main question at the front of everyone's mind, and the one that has fueled this feud, is "Can the West trust Huawei or will us using its equipment leave communication networks, and our own mobile phones, vulnerable?" The US believes that China will use Huawei for spying via its 5G technology, consequently, Washington has banned US firms from doing business with Huawei.
Whilst Huawei takes a back seat, there are many alternatives to the company, for example, buyers in the United States will favour and be able to purchase from some high fledged telecommunications companies, already established as safe, such as Cisco or Qualcomm. Over the pond in Europe, 5G manufacturers will most likely include companies such as Ericsson and Nokia. The United Kingdom government says it will look at "multiple vendors" and will bring forward a Telecoms Security Bill in the autumn.
As the company continues to be in hot water, it has been revealed that they have a contingency plan B. This plan has been revealed as “HarmonyOS” which was developed as soon as the US feud commenced, HarmonyOS was first, officially, revealed at the company's Developer Conference back in August of 2019. The innovative tool is described as a microkernel-based, distributed operating system, which is designed to run across all types of devices. The tool is reportedly able to run on low power devices which gives it a competitive edge and may be a glimmer of hope for Huawei.
Verizon to sell Yahoo and AOL for $5 Billion to Apollo
US telecoms giant Verizon is selling its media assets, which includes Yahoo and AOL, to Apollo Global Management, a US private equity firm in a deal worth $5bn (£3.6bn). Verizon will retain a 10% stake in the company, which will be known as Yahoo at the close of the transaction and continue to be led by CEO Guru Gowrappan.
According to Verizon this corporate carveout will allow Verizon Media to aggressively pursue growth areas and stands to benefit its employees, advertisers, publishing partners, and nearly 900 million monthly active users worldwide.
“The past two-quarters of double-digit growth have demonstrated our ability to transform our media ecosystem. With Apollo’s sector expertise and strategic insight, Yahoo will be well-positioned to capitalise on market opportunities, media, and transaction experience and continue to grow our full-stack digital advertising platform. This transition will help to accelerate our growth for the long-term success of the company.” Guru Gowrappan, CEO, Verizon Media.
Dominating the internet
Yahoo and AOL once dominated the internet but were subsequently overshadowed by firms like Google and Facebook, instead, they both became giant publishers. Yahoo Sports is a popular destination with sports fans, and Yahoo Finance provides a wealth of information for retail traders. AOL acquired a variety of early media brands, including the Huffington Post (now HuffPost), TechCrunch and Engadget, and several digital ad-tech companies to create a giant platform for advertising. Verizon bought Yahoo in 2017 and AOL in 2015 for a combined $9bn, so are selling at a considerable loss.
“The next iteration requires full investment and the right resources. During the strategic review process, Apollo delivered the strongest vision and strategy for the next phase of Verizon Media. I have full confidence that Yahoo will take off in its new home.” Hans Vestberg, CEO, Verizon.
The sale by Verizon comes after it disposed of blogging platform Tumblr in 2019 and news website HuffPost last year. Under the terms of the agreement, Verizon will receive $4.25 billion in cash and preferred interests of $750 million. The transaction includes the assets of Verizon Media, including its brands and businesses.
The transaction is subject to satisfaction of certain closing conditions and expected to close in the second half of 2021.