Here's Why the Worst Is Yet to Come for Frontier Communications Corporation
Frontier Communications (NASDAQ: FTR) bet $10.54 billion that bigger would prove to be better and that proved to be a mistake.
The company spent that money buying approximately 3.3 million voice connections, 2.1 million broadband connections, and 1.2 million FiOS video subscribers in California, Texas, and Florida (CTF) from Verizon (NYSE: VZ). That deal was supposed to give the company the scale to lower its costs, while also making it more competitive with its much-larger rivals.
"This is a transformative acquisition for Frontier that delivers first-rate assets and important new opportunities given our dramatically expanded scale," said CEO Daniel J. McCarthy in April 2016 when the deal closed. "It significantly expands our presence in three high-growth, high-density states, and improves our revenue mix by increasing the percentage of our revenues coming from segments with the most promising growth potential."
Source: Fool.com
Verizon Communications Inc. Stock
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