Verizon is already so far in debt, they'll definitely need to get rid of the excess onshore IT baggage to help pay for this white elephant. $5B for another worthless company.
http://money.cnn.com/2016/07/22/technology/yahoo-verizon-sale/index.html
30 replies (most recent on top)
“actually it is more like bye-bye Union and bye-bye Wireline. Wireline is only a small portion of the footprint and all that is being bought now is being bought for the wireless/content side of Verizon. ” -@1ebj
Peculiar way of showing the Union the door, via renewing the contact for multiple years, don’t you think @1ebj.
@dnt, wow, you’re Jeane D--k-son and Nostradumbass all rolled up into one.
What a profoundly dimwitted prediction.
Debt is good @IvohozQ-3umu?
My Dad never thought so.
“they sold Florida, Texas, California for 10billion. those businesses require heavy infrasucture, materials, labor, etc. AOL, Yahoo are all content. No storm damage, no vehicles, no double wood, no failing infrastructure, no union s---ing the company dry. This is the new Verizon.” @dnt
dnt, how’s that working out for ya?
Last I checked, the Union’s continuing to provide a great ROI.
Maybe it’s time to buy back those states you mention?
S--- on this wizard of not, debt is great dude:
http://seekingalpha.com/article/3991152-stay-away-verizon
By the way.
110 billion is debt is not bad, when you make 18 million in profit after debt payments, etc.
Morningstar is not all that smart. the Overall debt is very good, and thus cheap.
Look at FTR, bonds are 9.25% until maturity.
Please think, before you spew.
of course the IT work off-shore s---s. 90% of it, must me fixed on shore.
Yahoo is worth 35 Billion.
34.999 Billion of that is the portion of the business called Alibaba.
This purchase will exclude Alibaba.
"Your a moron!" DERP
2klb, the jerkoffs jerkoff
"@1ebj You are a dumb FUHK moron too.
Potomac and New York regions are highly profitable for VZ wireline. They will never be sold.
No one could afford them anyway.
Unions and VZ wireline in these profitable areas are safe for 20 years.
by Anonymous | Post ID: @IvohozQ-2gun"
@IvohozQ-2gun Maybe 10 yrs tops, maybe. I'm guessing closer to 7. Everything is being collapsed into Voip, and the pace is frantic.
Oh - and BTW Wizard of Not, telecoms have traditionally been debt heavy, because it is such a capital intensive business.
If Vodafone had not been bought out at a point when bond prices were almost unrealistically low, then the company would have forever been saddled with an almost half partner, that produced nothing.
You can definitely argue a lot of the other nonsense, but Vodafone and Yahoo were prudent moves.
@IvohozQ-2klb is clearly neither a business, finance nor investment wizard.
Debt is cheaper than equity. Debt holders love Verizon debt because of the billions in cash that it predictably generates. When people stop talking, texting, emailing, surfing or watching video, that is when the cash flow will be in trouble and debt holders need to worry.
Equity holders just love Verizon's cash dividends, which are based on the cash flows discussed above,
Instutional investors far wizer and more educated than most here, flock to Verizon stock when the markets are rocky. It is a 'safe-harbor' when volatility blows.
What has been missing from Verizon's many access points is a powerful front end and what YHOO offers.
@2sqd - Ever hear of Morningstar retard? Yeah well Verizon has a triple B credit rating and is only rated 2 stars. That is a $hit rating, because Verizon is a $hit company. They have quadrupled their debt in the past ten years. They are banking on continued growth even when the market is saturated and EVERYONE is trying to take their subscriber base.
Like I said earlier, a couple bad quarters and this house of cards starts crumbling faster and Shamwow will not be able to keep lying to investors forever, this $hit storm will start to catch up. Verizon is now selling its device installment debt on the public market. Yes selling its debt like the government. Ring a bell? Just go watch the Big Short and its the same thing except housing vs telecommunications.
$110 Billion in debt and counting. Go ahead and buy Yahoo and add it to the pile of debt. Verizon will NEVER get out from under this debt. McDumbass has ruined the company and maxed out the credit card.
Investors only care about the dividend. As soon as that is threatened, they will run and sell sell sell.
Keep telling yourself Verizon is able to handle the debt, keep telling yourself wireline is the most valuable thing ever which is not replaceable and not sell-able.
Verizon is in deep $hit but like all the other investors, I will keep milking that dividend until it runs dry, which is soon.
http://quicktake.morningstar.com/stocknet/bonds.aspx?symbol=vz
Please sell us wireline folks so we don't have to go down on this sinking ship.
All of this extra debt, as always, will be paid for by ruining the lives and futures of current employees and increasing prices on all products and services, which will further increase consumer distrust of Verizon.
@1ebj You are a dumb FUHK moron too.
Potomac and New York regions are highly profitable for VZ wireline. They will never be sold.
No one could afford them anyway.
Unions and VZ wireline in these profitable areas are safe for 20 years.
You are one dumb f--. See XO, AOL, Spectrum deals. Verizon's D/E Ratio is high, but it's interest coverage ratio and its cash flow-to-debt ratio prove they are capable of taking on debt without any eyebrows being raised by the stockholders or analysts.
@1DLQ - Your a moron! Verizon is broke, beyond broke. They have a mountain of debt. They can't buy Yahoo with 2 months profit, they can't even pay the bills they already have! They'll pay for it with your job because Shamwow and McDumbass arn't taking a pay cut.
@sdf ... actually it is more like bye-bye Union and bye-bye Wireline. Wireline is only a small portion of the footprint and all that is being bought now is being bought for the wireless/content side of Verizon. Wireline easily supports itself but is not a 'value' part of the future of Verizon.
Verizon could take their profits from 2 months and get yahoo.
Buying Yahoo, huh?
What's next? MySpace?
I dont understand why everyone is commenting that the severance will be half???
A declining company buying another declining company...what greatness!
Wow yahoo 5B, XO 2B and the new spectrum.......these guys must be desperate......Sounds like Worldcom.
You're right about the "new Verizon". So there's no need to hang on to those lazy onshore, wireline IT goldbricks. Especially since most of the real IT work is done offshore now. And all the heavy lift field work is done by the union. Bon Voyage scabbies!
i doubt it, they sold Florida, Texas, California for 10billion. those businesses require heavy infrasucture, materials, labor, etc. AOL, Yahoo are all content. No storm damage, no vehicles, no double wood, no failing infrastructure, no union s---ing the company dry. This is the new Verizon.
Are they going to call it Verihoo or Yahizon? Does the $5 billion include Marisa Mayor's $40 million golden parachute?
What do you get?
More RIFs! 1/2 the severance! Less filling! Tastes great! Especially since the stock has been downgraded.
What do you get when one $hitty company buys another? Look at all the marvelous things that came from Verizon buying AOL....we have game changers like blow90 and....uh what else? $4 billion well spent. Bravo McDumbass....bravo!
Of course what is another $5 billion when your already $110 billion in debt?