Verizon continued to be connected to a move for domestic rival UScellular, though this week the reports focused on operations in the Los Angeles area rather than a broader acquisition which hit headlines last week.
The top-tier US operator’s consumer CEO Sowmyanarayan Sampath (pictured) yesterday (13 May) told Bloomberg Verizon was interested in acquiring a stake in its LA operation held by UScellular.
Bloomberg quoted historic documents showing UScellular’s parent company held a 5.5 per cent stake in Verizon’s LA business in 2016. Sampath told the news outlet his company remained interested in acquiring the holding, albeit only if a favourable price was agreed.
The news outlet noted Verizon’s share of its domestic retail market had fallen in recent years while rivals AT&T and T-Mobile US made gains, prompting the company to explore options for growth.
Bloomberg also noted the share of the LA business held by UScellular’s parent company generated pretax income of $65 million in 2023, matching the figure of 2022, potentially whetting Verizon’s appetite.
Last week reports emerged linking Verizon and T-Mobile to separate deals for parts of UScellular’s business.
The Wall Street Journal reported the major operators were seeking to bolster their access to spectrum and licences through the transactions.
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