Verizon is reported to be getting ready for a sale of a grouping of assets that amounts to a total upwards of $15 billion, with a possible announcement on the deal later this week which could include information on who Verizon Wireless might be selling off assets to. While we don’t know exact details at the moment on who the alleged deal involves besides Verizon themselves, it’s likely that Verizon is selling assets which could include cell phone towers as well as portions of its wireline business so that they might decrease part of the debt they accrued while trying to upgrade their network.
Verizon’s Chief Executive Lowell McAdam made a statement last month about the possibility that Verizon may be interested in selling off some of its wireline business if they came upon an “attractive deal,” and that “There are certain assets on the wireline side that we think would be better off in somebody else’s hands so we can focus our energy in a little bit more narrow geography.” In addition to spending $130 billion to acquire the 45% share of Verizon Wireless that Vodafone was the previous owner of, Verizon also likely spent a decent amount at the latest AWS-3 spectrum auction which recently closed this past week, with analysts believing they spent north of $15 billion to acquire new spectrum, so it isn’t surprising to see Verizon moving quickly to unload assets that they don’t necessarily feel they need.
Although the rumor states that Verizon could be looking at selling off its wireline for around $10 billion or more, another $5 billion cell phone towers is believed to be part of the potential deal according to statements made by analysts of J.P. Morgan Chase & Co. last year. which suggested Verizon had the potential to sell off some of its cell phone towers for around $5 billion. The WSJ reports that Verizon is still in talks about the asset sales so the pricing and the amount of assets of which they sell could still change at any point in time between now and when things may be officially announced by the company.