According to reports presented by The Wall Street Journal: Verizon Communications Inc.(NYSE:VZ), the leading wireless company is in close to the selling of its parts, referring to its wireline business and cellular towers for US$10 billion so that more focus can be created on its wireless services. Verizon, on is reportedly readying a deal that would definitelylighten its load.
The deal is expected to allow the company to aim directly within the depth of its wireless service; a source of generating 70% of revenue for the company. The sales would no doubt provide financial flexibility to Verizon; it is still working off the debt it accumulated when it acquired full control of Verizon Wireless in 2014 and committed to paying approximately US$10.4 billion for wireless licenses in the latest FTC spectrum auction.
AT&T Inc.(NYSE:T)is also shopping for buyers for its data centers, looking for interested parties. The company was a leading bidder in the FTC auction with US$18.2 billon.
Additional spectrum is what both carriers currently require to empower their wireless networks and continue to enable Netflix in providing ease of rendering music and videos on Smartphones.
A prominence of multiple deals is being overseen in Verizon’s asset sale, which could happen this week. It is not a “wow” deal as such. The company has been announcingits intent to sell off its non-required assets for months.
Verizon no doubt is growing slow but it’s not something unique or new. The previous records show the company selling 4.5 million landlines to local telephone company Frontier Communication in 2009. Its business directories however shuttered in 2006.
No specific cell towers are required to manage a cellular business. In 2009, T-Mobile sold its cellular towers to Crown Castle for $2.4 billion. Instead of managing those towers themselves, they let other companies manage their towers.
A Verizon spokesman and an AT&T spokesman declined to comment.