This week’s article is about Verizon Communication. The company bought
from Vodafone the part that the British company owned of Verizon Wireless. A
total of U$130 billion was spent in order to acquire Verizon Wireless totally. Before
the deal, Verizon was in the market of Internet and fiber optic market having
operating income of only U$87 million. Now, by acquiring the rest of Verizon
Wireless, the company has an operating income of U$12.9 billion. Verizon, on
the cellphone service market, have major competitors that are profiting and
getting new costumer at a fastest face than Verizon, which means a drop and
sales in service. Verizon needed the acquisition of Verizon Wireless so that
the opportunity to grow and earn more profit rises, since they do not need to
share the profit with Vodafone anymore. Instead of relying on TV and cellphone
service, Verizon expends its markets to the Wireless market.
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