It's final: Verizon will take control of wireless unit for $130B

Tuesday, 3 September 2013

Verizon Communications moved to gain full control of its U.S. wireless assets after Vodafone Group agreed to sell its 45% stake in Verizon Wireless, a cash-and-stock acquisition worth $130 billion, the companies announced after Verizon's board signed off on the deal. "The opportunity really crystallized because of the capital markets. It was really a perfect storm on the financial perspective on the positive side," said Verizon CEO Lowell McAdam, who pointed to rising interest rates as a strong incentive to finally reach an agreement to end their 14-year partnership.

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Microsoft pays $7.2B to land Nokia's phone business

Microsoft will now become much more of a hardware company after agreeing to pay Nokia $7.2 billion in cash to buy its cellphone business, with Nokia CEO Stephen Elop returning to Microsoft amid speculation he might replace retiring chief Steve Ballmer. The deal includes the Finnish handset-maker's patents and a 32,000-strong workforce. Ballmer offered three reasons for ending their Windows Phone partnership: the companies' separate business needs; the duplicated efforts of building the two brands; and the difficulties of deciding how to invest each partner's capital. Also, executives said uniting the phone and software under a single banner will boost Microsoft's gross margins from less than $10 to more than $40 per unit. Microsoft will continue to license Windows Phone to other handset-makers.

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Microsoft will buy Nokia's handset business

Microsoft reached an agreement with Nokia to buy the Finland-based company's smartphone and cellphone handset business for $5 billion. Microsoft will pay an additional $2.2 billion to license Nokia's patents. The acquisition is part of Microsoft's drive to expand beyond the software business. Nokia CEO Stephen Elop will join Microsoft as an executive vice president of devices and services

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Retailers text back-to-school messages for 90% open rates

The latest trend in back-to-school marketing for retailers is using SMS to generate high engagement, writes Todd LaBeau, vice president of digital at Lindsay, Stone & Briggs. Kohl's and Abercrombie & Fitch are sending out short and sweet contest messages, whereas Nordstrom and Macy's are concentrating on getting recipients to share. The driver is that nine of 10 text messages are read within three minutes of being received, per SinglePoint Research.

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How Social Media is Transforming the Marketing Operations Process

Join this webinar to hear experts from IBM and featured analyst firm Gartner, discuss how marketing operations can help marketers collect, measure, and assess every program—from social to mobile to mass marketing. Find out how fine-tuned marketing operations can have a direct impact on increasing campaign effectiveness and optimizing marketing program spend.

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Aetna extends its health care campaign to employers, providers

Aetna today will launch an "Our Healthy" campaign targeted at employers, health care providers and policymakers that highlights its technology and "accountable care" credentials, in an effort to reach the majority of Americans who are insured through their jobs. The campaign, created by OgilvyOne, will have online, print and mobile components running through the rest of 2013 and is part of a $50 million marketing strategy for Aetna.

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Taco Bell's resurgence required a major marketing, menu shift

Taco Bell, which Ad Age has named its Marketer of the Year, turned around four years of poor sales by setting itself up as a lifestyle brand with the 2012 introduction of its "Live mas" slogan and its first Doritos Locos Tacos. The Doritos tacos helped turn a 1.4% sales decline in 2011 to an 8% increase in 2012. Under Draftfcb and Deutsch, Taco Bell heavily targeted millennials on social media and increased its ad budget by 12% in 2012

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