IT didn’t come as a complete surprise when Verizon Communications agreed earlier this month to pay $130 billion
for the 45 percent of the Verizon Wireless unit that it didn’t already
own. What’s startling, though, is the parent company’s dependence on its
wireless unit’s operating profit. Without Verizon Wireless, the value
of the old Verizon — the giant telephone company that provides dial-tone
service as well as Internet and fiber optic TV to millions of customers
— is vanishingly small.
In the first six months of this year, Verizon’s nonwireless business
made only $87 million in operating profit. That’s less than the profit
of many successful law firms — and it’s positively paltry compared with
the business’s roughly $20 billion in sales. In the same period, Verizon
Wireless had roughly twice as much revenue, but it made close to $13
billion in operating profit, which was divided between the two parent
companies. Read More:
No comments:
Post a Comment