In Affärsmodellbloggen, Weekly disruption feed

Enjoy this weekly feed of inspiring, interesting and intellectual articles and news, with a focus on disruption!

Big vertical integration happening in telco and advertising

Recently the huge AT&T acquisition of Time Warner was closed, and to partly finance new debt the telco has been quietly raising some prices. The deal is huge not only for its price tag (>$85 billion) but for what it means in tech. It follows Verizon’s (a competitor), who has bought both AOL and Yahoo recently.  AT&T also recently bought AppNexus, an ad-tech firm, and the idea for both the telcos is to finally compete for the big bucks in digital ads.

“According to The Wall Street Journal, AT&T wants to appeal to advertisers with hyper specific targeted ads by levering the huge amount of data it already has on customers from its wireless offerings over the years for more successful campaigns.”

When competing with Google and Facebook however that level of data and targeting will definitely be needed. Interesting developments to follow, will other telcos follow? Will it fail like Ericsson’s big bet on content in the early 2000s?

→ Related article: AT&T quietly hikes customer fees to pay for Time Warner deal
→ Related article: AT&T is acquiring AppNexus to help it sell even more ads

Pharmacy may be the next retail niche to be disrupted

We have previously written about what happens when Amazon enters a new market. In short, the stock prices of established companies fall and the margins diminish. Up next for Amazon to disrupt is pharmacies and they have taken the first step through the acquisition of the online pharmacy PillPack. The market responded as expected, the two biggest US pharmacy retailers CVS and Walgreen were down 8% and 10% following the news. However, Walgreens CEO Stefano Pessina seemed to take the news with ease with his response, “We are not particularly worried”.

→ Related article: Amazon Will Kill CVS And Walgreens’ Business Model – More Bad News For Cashiers
→ Related article: 32-Year-Old Founder Sells His Pharmacy Startup To Amazon

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