Verizon is not the first communication company players think of when they think video games, but it's not for lack of trying. Verizon struck a deal for exclusive skins in Pokemon GO recently, and has reportedly been trying to break into video games in other ways as well.
While not much is currently known about Verizon's bid for space in the game market, it's well known that this is not its first attempt to branch into other markets. This was the case when Verizon purchased AOL and, two years later, Yahoo for around $4.4 billion each. At the time, Verizon's goal was breaking into the online advertising industry both companies were profiting from, but now Verizon has changed its tune.
Verizon sold AOL and Yahoo, which it previously grouped under the Oath umbrella, to Apollo Global Management, a global equity firm. The sale went down for $5 billion, just over half the total price Verizon paid for both companies. The main reason behind this is that, while AOL and Yahoo have continued to be profitable, the companies clearly were not bringing in the kind of money that justified their combined price tag. Cuts were already being made, like Yahoo Answers being shut down, so it seems Verizon decided to get an immediate profit rather than a trickle over several years.
There was a time when purchasing both AOL and Yahoo would have been a great move for Verizon, but in truth it got in on the game a little late. Yahoo and AOL have since been usurped in popularity and online traffic/use by Google and Facebook, and it's clear that status quo will not be changing any time soon. While the companies pulled in $1.9 billion last year, this was an increase over revenue for Verizon from previous years, indicating that it would be a long time before the price of purchase would be recouped. Conversely, if Verizon is trying to get into game streaming, it might still have a shot, as even Google Stadia is lagging behind with essential features.
Facebook, like Google, is trying to innovate when it comes to video games, recently purchasing VR developer Downpour Interactive. Still, no communication giant has perfected an online streaming service to compete with heavy hitters like Steam yet, so Verizon has a shot.
According to Apollo, the future of AOL and Yahoo may include doubling down on subscriptions for their most popular services, which Apollo hopes will generate more revenue. And if Facebook has a repeat of its data breach from last month, maybe more people will give other services another try.