Is Verizon Contemplating an Acquisition?
This is Verizon’s second attempt to buy out Vodafone; in 2006, it made an offer that was rejected by the British network operator. Analysts still question whether the deal is feasible as the venture’s worth has been estimated at approximately $100 billion and Verizon has $53 billion in debt. But McAdam believes a deal is possible. “Our wireline business is getting stronger and as that gets stronger, it makes it easier,” he said.
Offering further support of this claim, the company’s chief executive also announced that Verizon had added 2.1 million net subscribers in the fourth quarter, which was the joint venture’s “best quarter in history.” But comparatively, 2013 is expected to be “relatively flat.”
There was more bad news. Even with the impressive customer additions, the company hinted that it had a difficult quarter; it plans to take $9 to $10 billion in charges for the three-month period, stemming from pension liabilities and Hurricane Sandy-related costs. Verizon will report earnings on January 22.
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