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Verizon CEO Lowell C. McAdam speaks during a keynote address at the 2013 Consumer Electronics Show in Las Vegas.
Lightning struck twice at Verizon on Thursday evening as the telecom behemoth announced a $15.54 billion sale in assets in two separate transactions.
The telecom behemoth will sell its local wireline business in California, Texas and Florida to Frontier Communications for $10.54 billion, Verizon said. It will also sell about 165 of its towers to American Tower, a Boston-based communications tower operator, for $5 billion. Verizon's stock rose about 1 percent in after-hours trading following the announcement, while Frontier's shares rose almost 4 percent. American Tower's stock also rose slightly after the bell.
Read More Verizon Cuts Most Data Plan Costs by $10 Per Month
Verizon's deal with Frontier marks the second time in six years the two companies have done business together. Frontier bought 4.8 million rural phone lines from Verizon for $8.6 billion, according to a Reuters report. The New York City-based company also
said it would buy back $5 billion in shares starting in this year's second quarter.
The telecom behemoth will sell its local wireline business in California, Texas and Florida to Frontier Communications for $10.54 billion, Verizon said. It will also sell about 165 of its towers to American Tower, a Boston-based communications tower operator, for $5 billion. Verizon's stock rose about 1 percent in after-hours trading following the announcement, while Frontier's shares rose almost 4 percent. American Tower's stock also rose slightly after the bell.
Read More Verizon Cuts Most Data Plan Costs by $10 Per Month
Verizon's deal with Frontier marks the second time in six years the two companies have done business together. Frontier bought 4.8 million rural phone lines from Verizon for $8.6 billion, according to a Reuters report. The New York City-based company also
said it would buy back $5 billion in shares starting in this year's second quarter.
Verizon said it expected the Frontier and American Tower
transactions to be finalized by the first half of 2016 and by mid-2015,
respectively. "The [Frontier] transaction includes Verizon's FiOS
Internet and Video customers, switched and special access lines, as well
as its high-speed Internet service and long-distance voice accounts in
these three states," the company said. "Frontier will continue to
provide video services in these states after the completion of the
transaction."
"Our long-standing strategy has been to consistently invest in our networks, improve our customers' experience and develop new products and services while delivering profitable growth," Lowell McAdam, Verizon's CEO, said in a statement. "These transactions will further strengthen Verizon's focus on extending our industry leadership position in our core markets and return significant value to our shareholders."
"Our long-standing strategy has been to consistently invest in our networks, improve our customers' experience and develop new products and services while delivering profitable growth," Lowell McAdam, Verizon's CEO, said in a statement. "These transactions will further strengthen Verizon's focus on extending our industry leadership position in our core markets and return significant value to our shareholders."
Fred ImbertNews Associate
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