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This is a sub-selection from Follow the money

CXM_Splicer
Looking at the bigger picture
Premium
join:2011-08-11
NYC
kudos:2
reply to Crookshanks

Re: Follow the money

I thought VZ and Cellco were two separate companies... why is VZ pumping money into Cellco rather than invest in its own business?


openbox9
Premium
join:2004-01-26
Germany
kudos:2

Cellco Partnership (d.b.a. Verizon Wireless) is a majority owned subsidiary of VZ. As a holding company, VZ consolidates Cellco's financial accounting with its own. Money flows both ways.


CXM_Splicer
Looking at the bigger picture
Premium
join:2011-08-11
NYC
kudos:2

That sure doesn't sound like two separate companies to me. Where did the baby bells, that Verizon if formed out of, get the money to purchase/expand their wireless divisions? And where did Verizon get the money to purchase the US portion of Vodaphone?


openbox9
Premium
join:2004-01-26
Germany
kudos:2

It's a partially owned subsidiary.

I'm not sure what you're asking regarding the financing of the business operations. Shooting from the hip I would suggest the financing came from multiple sources, to include cash reserves and debt and equity offerings. I'm sure there's more in the mix, but that's a start.


CXM_Splicer
Looking at the bigger picture
Premium
join:2011-08-11
NYC
kudos:2

quote:
I'm not sure what you're asking regarding the financing of the business operations.

Just keeping in line with the thread and following the money. The simplest answer to my question is 'from the wireline divisions' which further illustrates that, even though it is a partially owned subsidiary, the US portion of VZW is not somehow separate from VZ (which it is often touted as being).

openbox9
Premium
join:2004-01-26
Germany
kudos:2

said by CXM_Splicer:

The simplest answer to my question is 'from the wireline divisions' which further illustrates that, even though it is a partially owned subsidiary, the US portion of VZW is not somehow separate from VZ (which it is often touted as being).

That is a simplistic, yet not totally accurate answer. VZW is a subsidiary, primarily owned and managed by VZ. Legally, it's a separate company. Operationally, the two are intertwined to the point that there's not a whole lot of distinction between the two. Then again, I think you understand all of this.