Verizon-Hearst Build Complex Networks, Boost Digital Platform

U.S. telecom behemoth Verizon Communications Inc. (NYSE:VZ) and private media group Hearst Corp. have been teaming up on a number of digital ventures for quite some time now. Recently, the companies launched a segment – ComplexNetworks.com – in a bid to strengthen their digital-video networks. This segment will manage three other digital segments – Complex Media, the digital-media company focused on millennial males – and recently launched digital video channels RatedRed.com and Seriously.TV.

The latest launch should help Verizon expand its content and distribution businesses within the digital media portfolio.

Complex Media, RatedRed.com & Seriously.TV

In Apr 2016, Complex Media Inc. was acquired by Verizon Hearst Media Partners, a 50-50 joint venture between Verizon and Hearst Corp. Complex Media offers several online sites especially focusing on entertainment news, sneakers, hip hop music, food, fashion, sports and technology. The company sees more than 52 million monthly visitors garnering 300 million monthly views and has expanded from digital programming and its print magazine business into live programming. Complex Media has been raking in profits since 2010, courtesy of advertising facilities for targeted audience.

RatedRed.com and Seriously.TV are the two mobile channels started by Verizon Hearst Media Partners post the Complex Media buyout. RatedRed.com mainly showcases lifestyle content – news updates, documentaries, music, food, outdoor life, military affairs, politics and faith for millennials in the U.S, whereas Seriously.TV is more of a comedy news channel.

ComplexNetworks.com

ComplexNetworks.com is a set of digital video networks with a diversified combination of Complex Media, RatedRed.com and Seriously.TV which focuses on video and social content that targets younger audiences interested in programs beyond traditional TV.This should help in the production, distribution and monetization of popular programming channels. The companies merged under ComplexNetworks.com register over 500 million video views per month and have a social following of more than 75 million users. Hearst and Verizon are focused on launching and investing in digital video networks for their next generation viewers

Zacks Rank and Stocks to Consider

Verizon currently has a Zacks Rank #3 (Hold). Better-ranked telecommunication stocks include NTT DOCOMO, Inc. (NYSE:DCM) and Nippon Telegraph and Telephone Corporation (NYSE:NTT) , both of which sport a Zacks Rank #1 (Strong Buy) and Qualcomm Inc. (NASDAQ:QCOM) which has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Interested in IPOs? Check out the special edition of Zacks Friday Finish Line below, where Editor Maddy Johnson and Content Writer Ryan McQueeney interview Kathleen Smith of Renaissance Capital about the IPO market in 2016 (see part two here).

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