While many media outlets focused on the story of Yahoo being a once-great company that was crushed by competition and its CEO Marissa Mayer, Cramer saw a different story emerge from the deal.
"I think this need for a competitive edge is the real story, not whether Marissa Mayer stays or goes — I think she goes — or whether she has done a good job or a bad job managing Yahoo," the "Mad Money" host said.
"The company needs to maintain its lead over the competition by offering subscribers more than just a great wireless network," Cramer said.
When Cramer spoke with Verizon CEO Lowell McAdam back in February, McAdam confirmed Verizon's interest in purchasing Yahoo and marrying the assets under the leadership of AOL's Tim Armstrong.
McAdam shared his game plan, and then executed on it because he had to. Verizon needs Yahoo more than any other company in the U.S. right now, Cramer said.
Verizon isn't blind to what is happening out there, either. Sprint reported a very strong quarter on Monday, and had the highest first quarter postpaid net subscriber additions, up 180,000. That was Sprint's best number in the last nine years.
"I know I have been skeptical of CEO Marcelo Claure and his plans for turning around what I thought was a sinking ship. Not anymore. These numbers are incredible," Cramer said.
Thus, Verizon's acquisition of Yahoo could give the company an edge to stay in the lead. Cramer listed some of the benefits that Armstrong's leadership over AOL and Yahoo could bring to Verizon. The first was with the NFL, which Yahoo already has a relationship with. The NFL plans to offer international rights to the league for games to be played in London and China.
These rights could be worth a fortune for the NFL, and could be worth a fortune to Verizon, too.
Cramer also believes that this could be the beginning of an Armstrong takeover spree. Verizon has the funds to roll up various media properties and become a digital newspaper and magazine to the world, and Cramer wouldn't be surprised to see Twitter rolled into the AOL-Yahoo property.
Many investors also questioned if Verizon overpaid for Yahoo given its lack of growth.
"I say no, because I think that every one of Yahoo's verticals can be revived easily," Cramer said.