Verizon Communications Inc. announced this week that it is selling its wireline assets in three states, including Texas, to Frontier Communications Corporation for approximately $10.54 billion, while also selling the leasing rights for 11,234 cell-phone towers to American Tower Corporation, a $5.1-billion deal that also entails the REIT acquiring 165 additional towers from Verizon. Verizon Communications Inc. says it plans to return some of the cash to shareholders by spending $5 billion on buying back its stock, according to a USA Today article. Verizon also said it wants to concentrate on the East Coast wireline business and will focus on expanding its FiOS broadband and high-speed Internet business in that region.
"This transaction marks a natural evolution for our company and leverages our proven skills and established track record from previous integrations," said Maggie Wilderotter, Frontier Communications Chairman and Chief Executive Officer. "These properties are a great fit for Frontier and will strengthen our presence in competitive suburban markets and accelerate our recent market share gains. We look forward to realizing the benefits this transaction will bring to our shareholders, customers and employees."
Lowell McAdam, Chairman and Chief Executive Officer of Verizon, added, "This transaction will further strengthen Verizon’s focus on extending our leadership position in our core markets and create value for both Verizon and Frontier shareholders. Frontier has proven to be an excellent partner. Together we will ensure a smooth transition for our customers and employees, and I have no doubt these teams will continue putting the customer first."
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