Dallas, Texas 12/12/2013 (FINANCIALSTRENDS) – Verizon Communications Inc. (NYSE:VZ) is a company that provides communications, entertainment and information services and products to businesses, consumers and governmental agencies. The company operates in the Verizon Wireless and the Wireline business segments. The Verizon Wireless’ communications services and products include wireless-voice and data services as well as equipment sales.
The Vodafone-Verizon deal
The latest buzz is that Vodafone is expecting to close a $130B sale of the 45% Verizon Wireless stake to Verizon Communications Inc. (NYSE:VZ). The shareholders will receive the proceeds of this sale by the beginning of March, which is when the companies are targeting for the Q1 close.
Both the companies announced this stock and cash deal in September. This came at a point of time when Verizon Communications Inc. (NYSE:VZ) had been trying to buy the stake from Vodafone for almost a decade. The former already controls Verizon Wireless. This transaction is slated to reach closure towards the end of February. This is definitely a piece of good news, not just for the company but for the company’s shareholders as well.
Verizon Communications Inc. (NYSE:VZ) also recently launched the 4G LTE network coverage in Somerset Massachusetts. This technology gives users the ability to use compatible devices to use the internet, post their photos and status updates and also download any files at speeds that are upto 10X faster than the standard 3G networks. The Verizon Communications Inc. (NYSE:VZ) 4G LTE network debuted in Boston and various surrounding areas in 2010 December. Wireless Broadband gives subscribers the flexibility to use services that are faster and more efficient.
Grabbing opportunities
Being ahead of the game is a lot about panning the technology landscape and snapping up the right opportunities when they present themselves. That is exactly what Verizon Communications Inc. (NYSE:VZ) is doing. The company just announced that it has acquired EdgeCast Networks. This CDN or Content Delivery Network sells its services to Pinterest, Twitter and Hulu.
Now that Verizon has acquired the company, it will definitely have a notable impact on the content delivery network market. This service will be a replacement for the in-house CDN service that Verizon Communications Inc. (NYSE:VZ) is currently using. It’s not just Verizon that will benefit from this deal. EdgeCast’s efforts to scale its network will get a definite boost and its revenue growth will also get the support it needs. Very simply put, the rival CDN’s might just end up seeing Verizon Communications Inc. (NYSE:VZ) grab extra market share now that it has EdgeCast in its fold and will outspend them.
Other acquisitions
Prior to the EdgeCast acquisition, Verizon Communications Inc. (NYSE:VZ) had acquired UpLynk, a digital media-streaming company. It seems like Verizon has planned these 2 acquisitions in a very strategic manner and will leverage the strengths of both these companies to build a stronger version of itself. The company already has a strong position in its video service via FiOS TV. These two latest buys will help in giving the company a complete video-ecosystem and Verizon Communications Inc. (NYSE:VZ) might still rule the day.
