Company Background
Public Company
210,000 Employees
Market Capitalization: 202.5 billion$
Sales: 127.08 billion$
CEO: Lowell McAdam
Assets: 232.71 billion$
Profits: 9.63 billion$
Verizon Communications, which is the largest company in the telecommunication and broadband area, was firstly formed out of the merger of GTE Corp and Bell Atlantic Corp, a couple of most prosperous and gigantic companies. This is one of the leading companies in the United State’s market shares. On June 2000, the 64.7 billion US$ merger of the two telecommunication companies was approved by the Federal Communications Commission, and since then The Verizon Communications has been on the market to offer products and services. Since then, Verizon has become the biggest regional telecommunication company in the US, by managing 63 million mobile bandwidths in over 40 states. Furthermore, long-distance calls and internet services were offered to their clients in New York, before than long-distance services in other states.
As the Verizon
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From that time Verizon had the possibility to implement strategic moves about its services without being bound to a partner. Verizon paid Vodafone $58.9 billion in cash, common stock about $60.02 billion, and $5 billion in notes (D. Hardawar, 2014). Further Verizon sold its stock on Vodafone Omnitel enterprise for %3.5 billion, and would pay off somehow the remaining 2.5 billion. This deal was seen as one of the biggest ones in more than a decade. 4 of the biggest well-known names helped Verizon decide about its financial moves. They were JPMorgan Chase & Co, Guggenheim Securities LLC, Paul J Taubmen and Morgan Stanley. After this buyout Verizon expected a rise in company’s earnings per share much as 10% after it closes (S. Moritz & A. Thomson,