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| vz Are the selling off all of NE landlines? Or just the unprofitable ones? If they're selling off their complete NE landline network, this would almost reverse their buyout of NYNEX (when Bell Atlantic bought NYNEX). NYNEX = New York New England, with an added X.
Notice any similiarities between Verizon and Cablevision? Yeah, 2 different type of companies, but... Cablevision has a smaller area than a cable co like Time Warner Cable and Comcast, but... look at the speeds Ool provides. Both are focusing on profitable areas it seems. I read that the reason VZ stocks were always high (over $40 now) is because of the area of the country they provide phone service to, New York/New England area. Now VZ is replacing copper lines with fiber to provide tv and higher speeds. This does a number of things, creates more of a monopoly, because you now have to have VZ as your phone company. VZ has a smaller area than AT&T has. I think at&t will eventually move to a more fios type of connection. Yeah, it'll cost more money, because of more customers, but they have now have more revenue due to the purchase of bellsouth.
Basically, all I'm saying is that if they sell off their NE landlines they would have a smaller footprint in the country, and would look more like Cablevision. I'm not saying anything bad about Cablevision, but speculation always was that Cablevision would go private, then be sold to Time Warner Cable, or even Comcast, with the 1st one being the likely buyer.
A while back I read that investors fear that VZ would spin off their landline division, and focus on wireless, like Sprint did. I don't think they would do that, because of the money they're spending on fios, but I wonder if they're upgrading to fiber to make their landline division value rise in preparation for a spinoff... hmm... | |
Sammer
join:2005-12-22
Canonsburg, PA | Verizon is just selling their landlines in the three states of ME, NH, and VT. IOW they are splitting up what used to be NYNEX and keeping MA, NY, and RI. Actually Fairpoint will become a majority owned subsidiary of Verizon. | | |
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 SteveConIBEW 2222 Boston, MAPremium
join:2004-09-02
Boston, MA | said by Sammer:Verizon is just selling their landlines in the three states of ME, NH, and VT. IOW they are splitting up what used to be NYNEX and keeping MA, NY, and RI. Actually Fairpoint will become a majority owned subsidiary of Verizon. You're right about ME, NH & VT access lines being sold - but dead wrong about Fairpoint becoming any kind subsidiary of Verizon.
Step 1: Verizon will create a “spin off” company of Verizon operations, which will be a wholly owned subsidiary of the core company. The VT, ME, and NH operations will transfer $900 million to the Verizon parent corporation.
Step 2. Verizon will take the new “spin off” Company and immediately merge it with and into FairPoint. Verizon will receive $2,100 per access line. Total valuation of the deal $2.715 billion ($1.015 billion FairPoint stock to VZ shareholders, and $1.7 billion in Verizon debt transferred to FairPoint)
Step 3. FairPoint will take control of Verizon Plant, central offices, switches, customer lists, all internet systems from customer to (but not including) internet point of presence, internet customer lists, FIOS build out around Nashua NH.
In step 1, Verizon corporation receives $900M from the new entity that they created.
Look at step 2 closely. Verizon's stockholders get $1.015B in Fairpoint stock. Verizon corporation gets $1.7B of its debt transfered to Fairpoint.
Verizon ends up with ZERO Fairpoint stock - hence ZERO control of Fairpoint. Verizon stockholders get Fairpoint stock to keep or sell.
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United we bargain, divided we beg. | |
Sammer
join:2005-12-22
Canonsburg, PA | Technically that's true it's Verizon's stockholders who will own 60% of Fairpoint so it's a spinoff rather than a subsidiary. However Verizon will get to choose 6 of the 9 members of the board of directors. Fairpoint will have to remain independent for one year or it will owe the $600 million tax savings that Verizon is getting. | |
| reply to SteveCon
thank you for setting that one straight sammer | |
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