Fresh off announcing his $4.8 billion deal to acquire Yahoo, Verizon chairman and CEO Lowell McAdam reiterated the company's ambitions to transform itself into a "top global media company" on this morning's earnings call. He also said Verizon expects to see "meaningful" synergies in combining Yahoo and AOL, which it acquired last year for $4.4 billion, but declined to provide details on how the two companies would join forces and eliminate redundancies.
Verizon's performance last quarter underscores the challenges it faces in its wireless and wireline businesses, where growth has slowed and competition is intense. Revenue and wireless subscriber gains were lower than analysts had expected in the second quarter, due in part to a seven-week strike, carried out by 40,000 union employees, that hamstrung wireline operations and temporarily suspended advertising.
Total revenue landed at $30.53 billion, $41 million lower than Wall Street expectations. The company added 615,000 monthly mobile subscribers, lower than the 785,000 average that Bloomberg projected based on an analyst survey.
Verizon shares rose yesterday, as the Yahoo deal became official, and declined slightly on Tuesday morning. AOC