Verizon Communications (VZ) - NYSE
  • Yesterday, 7:22 AM
    • The deal is expected to close in Q1, and while the sale includes Yahoo's (NASDAQ:YHOO) core Internet assets and real estate, it does not include Yahoo's stake in Alibaba and Yahoo Japan, or its cash. There assets will continue to be held by Yahoo, which will change its name upon the deal's closing, and continue to be a publicly traded company. Said cash is expected to be returned to shareholders.
    • Yahoo will hold a dial-in conference call to discuss at 8:30 ET. Verizon (NYSE:VZ) will discuss when it holds its earnings call tomorrow at 8:30 ET.
    • VZ +0.35% premarket; YHOO halted
    • Previously: Reports: Verizon to announce $4.8B deal for Yahoo before open (July 24)
    | Yesterday, 7:22 AM | 55 Comments
  • Fri, Jul. 22, 12:44 PM
    • Leaks that Verizon (VZ +1%) continues to be the front-runner to close a deal for core Yahoo (YHOO +1%) have the telecom spending about $5B on the deal, vs. an earlier $3.75B-$4B.
    • While earlier Verizon interest excluded Yahoo's patent portfolio and real estate, the current talks do reportedly include the real estate.
    • Yahoo had set aside about 3,000 patents into a subsidiary called Excalibur for separate auction by Black Stone IP, though other bidders like AT&T (T +1.5%) or a group with Quicken Loans' Dan Gilbert (still reportedly talking with Yahoo) or an aggressive TPG might yet want to buy the IP along with core assets.
    • The deal would be a "great outcome," Piper Jaffray analyst Gene Munster says, with time of the essence since "the real value here is unlocking Yahoo Japan and Alibaba (BABA +0.1%) in a cash-free transaction. And they really need to get that done before the election."
    • The $5B figure is still a bit low, Munster says, as he expects the deal to be around $6B. "If you look at the tax benefit for Yahoo Japan and Alibaba, that's about a $10B or $11B tax benefit, so a billion dollars here and there doesn't make much difference; there's still upside to Yahoo shares."
    | Fri, Jul. 22, 12:44 PM | 35 Comments
  • Tue, Jul. 19, 1:13 PM
    • The typical metrics that telecom investors examine may not matter as much to their holdings as a favorable macroeconomic environment, industry analyst Craig Moffett writes.
    • That's accounting for the price war as well as common bellwethers like average revenue per user, he says. In most industries, developments like telecom has seen in the past year (Verizon's (VZ -0.5%) recent moves to reset pricing; T-Mobile's (TMUS -0.3%) un-carrier promotions; aggressive phone financing revamps) would spur meaty debates about valuation and growth: "But telecom isn't most industries. It has now been a full decade since fundamentals were last a major part of the telco equity performance story (good or bad)."
    • Fundamentals may matter again soon, ahead of a new iPhone introduction (that could benefit T-Mobile and Sprint (S -3.9%) more than AT&T and Verizon), and AT&T's (T -0.2%) full integration of DirecTV finances.
    • But in the meantime, macro factors are still prevalent: "When interest rates are falling and the dollar is rising, the story appears to have been pretty straightforward, after all: Buy telecom."
    | Tue, Jul. 19, 1:13 PM | 20 Comments
  • Thu, Jul. 14, 3:38 PM
    • The FCC voted unanimously today to open up four bands of frequencies above 24 GHz for 5G wireless service, setting the stage for exploiting next-generation technologies for mobile transmission.
    • That's nearly 11 GHz of spectrum (3.85 GHz in licensed bands at 28 GHz, 37 GHz and 39 GHz, and 7 GHz in an unlicensed band between 64 GHz and 71 GHz).
    • The agency says companies will be able to exploit the spectrum for "fiber-fast" capabilities, up to 100 times faster than current 4G networks.
    • In addition, the agency pledged to push for opening up more millimeter wave bands as quickly as it can, via a Further Notice of Proposed Rulemaking that looks to apply today's rules to another 18 GHz of spectrum (in eight additional high-frequency bands)
    • In related stocks: (T +0.5%); (VZ -0.2%); (TMUS -0.5%); (S +1.9%); (DISH +1%); (CMCSA +0.4%); (STRP +5.7%); (GSAT -1.2%)
    | Thu, Jul. 14, 3:38 PM | 38 Comments
  • Thu, Jul. 7, 6:09 PM
    • The reaction on Wall Street has been fairly blithe to news of wireless price increases from Verizon (VZ -1.6%), which touched a 16-year high this week -- likely because analysts are reading the company's price hikes as more of a price cut.
    • That's when you look at pricing from the data perspective, per gigabyte. Prices are going up about 13% on average, Nomura's Jeffrey Kvaal notes, but price per GB is dropping about 20% on average (the smallest plan, for example, goes to $35/month from $30 but doubles data to 2 GB).
    • For the most part, analysts are signaling that contrary to conventional wisdom, Verizon's moves are defensive and they mean that the price war isn't over.
    • "It is being reported that VZ is raising prices and that shows the competition is not hurting them," says Wells Fargo's Jennifer Fritzsche. "We are not sure this is the correct conclusion ... in some ways a case could be made with these new plans and offerings VZ is acting more 'me too' to meet some of the perks which VZ's competitors are already offering."
    • Verizon's anti-overage moves -- a $5 "safety mode" and offer to roll over unused data -- also signal an acquiescence to customers' overage-related pains.
    | Thu, Jul. 7, 6:09 PM | 17 Comments
  • Fri, Jun. 10, 4:08 PM
    • Bloomberg reports AT&T (T +0.6%) and a group led by Quicken Loans founder/Cleveland Cavaliers owner Dan Gilbert (backed by Warren Buffett) each submitted a ~$5B second-round bid for Yahoo's (YHOO -1.4%) core business, patents, and real estate.
    • Separately, a day after CNBC reported Verizon (VZ +1.4%) made a ~$3.5B second-round bid, Re/code reports Big Red made an offer valued between $3B and $3.5B, depending on "how employee compensation commitments are treated." However, Verizon's bid excludes Yahoo's patents and real estate.
    • When adjusted for the absence of patents/real estate, Verizon's bid might be competitive with the others. Re/code observes Yahoo respectively values its patents and real estate at $3B and $1B, while adding others assign much lower values to each (~$1B for the patents).
    • Yahoo slipped today amid a 2.1% drop for Alibaba, and a 1.3% drop for the Nasdaq.
    | Fri, Jun. 10, 4:08 PM | 36 Comments
  • Thu, Jun. 9, 9:48 AM
    • CNBC's David Faber reports Yahoo (YHOO +1.1%) as having received multiple bids above $5B for its core business. That would place Verizon (VZ flat) - which is reported to have offered in the area of $3.5B - among the lower end of bidders.
    | Thu, Jun. 9, 9:48 AM | 66 Comments
  • Wed, May 25, 11:12 AM
    • In a surprise revelation, AT&T (NYSE:T) made a bid for Yahoo (YHOO -2.1%) and is still in the running for the core Internet business, Bloomberg reports.
    • They were out of the offing according to earlier reports. But they kept involved in the process through a stake in YP Holdings -- which was involved in the early round in April -- and while YP isn't pursuing the transaction any longer, AT&T is still around.
    • The interest from the telecom giant would present a formidable challenge for presumed frontrunner Verizon (NYSE:VZ). But Verizon didn't submit one of the highest first-round bids, a pair of the sources said.
    • The process has another week or likely more time to play out.
    | Wed, May 25, 11:12 AM | 65 Comments
  • Fri, May 20, 9:57 AM
    • Yahoo (NASDAQ:YHOO) is down 2.4% (better than the 6% decline it was tracking premarket) after last night's report that bids for the Internet pioneer's core business are coming in lighter than expected, at $2B-$3B.
    • CNBC's David Faber says sources are calling that report "completely wrong," noting that such a bid would be lower than the lowest of the bids seen in the first round of bidding. "Nobody has seen numbers of that type" in what has been a "fairly robust auction" at this point, Faber says.
    • "Could it be perhaps that Verizon (NYSE:VZ) would love to have it out there, the idea that it's coming in lower so that it conceivably could game the situation?" Faber asks. "I don't know."
    • The core business has more than $600M in EBITDA, including the losing parts, which would make for a very low multiple at $2B-$3B, he notes.
    • Now read Yahoo's Sale Could Still Derail »
    | Fri, May 20, 9:57 AM | 33 Comments
  • Wed, May 4, 3:18 PM
    • Dish Network (DISH -2.9%) has filed a lengthy brief with the FCC asking it to deny approval for Verizon's (VZ +0.2%) $1.8B purchase of XO Communications's fiber-optic business as well as related moves.
    • Verizon also leased XO's wireless spectrum (via XO unit Nextlink Wireless) with a purchase option. The moves would give Verizon near-exclusive control of 5G spectrum, Dish Network argues.
    • That would hinder competition overall in the 5G market, as well as current/future competition between Verizon and XO in fiber/wireless mobile backhaul, Internet transit, and enterprise and wholesale markets.
    • Verizon structuring the deal as a transfer lease avoided some scrutiny, Dish says, but the spectrum is the key to the deal.
    • Now read Verizon Is Undervalued »
    | Wed, May 4, 3:18 PM | 3 Comments
  • Fri, Apr. 22, 7:14 PM
    • Yahoo (YHOO -0.5%) and advisers are set to spend the weekend narrowing down more than 10 first-round bids for its core business, ranging from $4B-$8B, Bloomberg reports -- with an eye to moving forward as soon as next week.
    • They'll aim for about seven finalists and plan to offer them increased access to internal docs and management.
    • The higher-end bids reportedly came from bidders who haven't spent as much time with Yahoo, which should lead to more scrutiny into the structure of the offers.
    • In addition to the known bidders (that hadn't denied reports) -- Verizon (VZ +1%), YP Holdings, TPG, and Bain/Vista Equity Partners -- one or two other strategic firms were involved.
    • Echoing earlier reports, SoftBank (OTCPK:SFTBY +3.4%) isn't in the bidding but is likely eager to talk with anyone who also wants the Yahoo Japan stake.
    • Despite the progress, a final decision is likely at least a month away.
    • Now read Yahoo Sale Could Reboot Online Ad Competition »
    | Fri, Apr. 22, 7:14 PM | 71 Comments
  • Thu, Apr. 21, 9:21 AM
    • Verizon (NYSE:VZ) is 2.4% lower premarket after eking out in-line profits in the seasonally weak Q1, though revenues fell short.
    • EBITDA was $10.2B, up 1.7%.
    • Revenue by segment: Service revenues and other, $28.2B (down 1.4%); Wireless equipment, $3.95B (up 17.2%).
    • Wireless showed 640,000 net additions in retail postpaid (churn of 0.96%, improved Y/Y by 7 basis points). Of that, 452,000 were 4G smartphones. The company says about 92% of total data traffic is on its LTE network (that traffic up 50% Y/Y).
    • Postpaid phone net adds were -8,000, though, due to declines in 3G/basic phones; tablet net adds were 507,000. While in wirelines, net FiOS video adds were 36,000 and net Internet adds were 98,000.
    • The company isn't reporting average revenue per account. And it says while it expects full-year earnings to be comparable to last year, "given the status of labor contract negotiations, there will be pressure" on Q2 earnings due to timing cost reductions.
    • Press Release
    • Now read Verizon Flexing Its Income Might »
    | Thu, Apr. 21, 9:21 AM | 15 Comments
  • Thu, Apr. 7, 3:25 PM
    • If Verizon (NYSE:VZ) prevails with a bid for the core business (and Japan assets) at Yahoo (NASDAQ:YHOO), in an amount said to be less than $8B, Tim Armstrong of Verizon's AOL is liable to take charge of the Yahoo operation -- and Marissa Mayer is likely "gone," Bloomberg reports.
    • Of course, a proxy fight is still looming with Starboard, so Mayer and the board could be ousted even if Yahoo holds on to the assets.
    • Marni Walden, Verizon's executive VP, would assist Armstrong in running a combined Yahoo/AOL.
    • A brief jump into positive ground has ended as Yahoo has given back the gains, now down 1.1%.
    • Yesterday, Re/code reported that based on Yahoo's sale "book," the company's financial situation had become "increasingly dire," with revenue and earnings dropping 15% and 20% respectively.
    • Now read Why Activists Succeed - And Why They Will Change Yahoo »
    | Thu, Apr. 7, 3:25 PM | 22 Comments
  • Thu, Apr. 7, 2:58 PM
    • Yahoo (NASDAQ:YHOO) shares have jumped into positive ground, now up 1.2%, on news that Verizon (NYSE:VZ) is proceeding with a bid for its core assets.
    • Shares were down as much as 2.6% today.
    • Alphabet unit Google (GOOG, GOOGL) is also weighing its own bid, Bloomberg reports, with interest also showing up from Bain Capital and TPG. Time Inc. (NYSE:TIME) is still out there as well.
    • AT&T (NYSE:T) and Comcast (NASDAQ:CMCSA) are losing interest, Bloomberg also said, with Microsoft (NASDAQ:MSFT) also deciding it wouldn't bid.
    • Verizon might also put in for Yahoo's Japan interests, the report said.
    • Updated 3:06 p.m.: After a big spike into positive ground, Yahoo shares have gone negative again, -0.1%. Verizon is said to value the core business at less than $8B, vs. Yahoo's hopes for a $10B valuation, and has engaged three banks.
    • Now read Yahoo Should Be At Least $48 A Share »
    | Thu, Apr. 7, 2:58 PM | 30 Comments
  • Tue, Mar. 1, 1:46 PM
    • AT&T (T +1.1%) looks to be getting into the Web TV business as soon as this year, according to a release.
    • Selling its DirecTV video content over the Web would put it into competition with Sling TV (DISH +2.4%), which has offered a basic skinny bundle of live television programming over the Internet.
    • Later this year, AT&T says, it will launch three "bring your own connection" offers that won't be limited to its existing mobile or DirecTV subscribers.
    • "DirecTV Now" will offer "a range of content packages" (some skinny?) featuring on-demand and live programming along with premium add-ons, much like Sling TV. It will be available on Internet-enabled devices. Meanwhile, "DirecTV Mobile" will offer a mobile-first experience in what could be a solid answer to Verizon's (VZ +1.4%) Go90.
    • "DirecTV Preview" is a free offer (supported by ads) with a sampling of DirecTV content and looks to be a bit of a window display for the paid Web services.
    • More than 60% of the company's network traffic is now video, it says, and it serves more than 60M streams and downloads to TV customers each month.
    | Tue, Mar. 1, 1:46 PM | 23 Comments
  • Fri, Feb. 19, 9:01 PM
    • In a lunch with UBS analyst John Hodulik discussing video and the ad market, AOL chief Tim Armstrong gave some color to some previously discussed interest that AOL parent Verizon (NYSE:VZ) might have in Yahoo (NASDAQ:YHOO): Certain assets could bring a strong price, but "you don't want to catch a falling knife."
    • Verizon chief Lowell McAdam has acknowledged that Verizon might be interested in Yahoo, and Armstrong says it could happen -- at the right price.
    • Along with Yahoo's hiring an independent committee today to explore its options, AP reports the company has hired three investment banks -- Goldman Sachs, J.P. Morgan and PJT Partners -- in what may be a clearer signal that some kind of transaction is imminent.
    • “They’d have to start a process, share all the data regarding audience, distribution, monetization and talent,” Armstrong told Hodulik. “Everything at this point is theoretical. Assets with rapidly a growing number of users are very expensive. Even those with a stable number of users are expensive."
    • Yahoo shares finished the day up 2.1%; they're down 9.7% YTD.
    | Fri, Feb. 19, 9:01 PM | 31 Comments
Company Description
Verizon Communications Inc. operates as a holding company, which provides broadband, wireless and wireline communications services to consumer, business, government and wholesale customers. It operates through Wireless and Wireline segments. The Wireless segment provides communications products... More
Sector: Technology
Industry: Telecom Services - Domestic
Country: United States