Merger of Verizon & Alltel
History of Verizon
Verizon Communications, Inc. was formed on June 30, 2000 with the merger of Bell Atlantic Corporation and GTE Corporation, in New York City and incorporated in Delaware. On July 3, 2000 Verizon began trading on the New York Stock Exchange (NYSE) under the VZ symbol. On March 10, 2010 they began trading on the National Association of Securities Dealers Automated Quotations (NASDAQ). The mergers that formed Verizon had roots going back to the beginning of the telephone business in the late nineteenth century.
With the regulation by the government and the signing of the Telecommunications Act on February 8, 1996, Verizon saw promise of a new competitive marketplace. In 2004 Verizon was added to the Dow Jones Industrial Average. And in 2006, with the addition of MCI, Inc,, Verizon became a leading provider of advanced communications and information technology to large businesses and the government customers worldwide. The merger of Bell Atlantic and GTE was valued at more than $52 billion. The purpose of the merger was to build a dynamic company that is capable of competing in the industry’s top-tier level. It took two years for the merger to close. In the meantime, Bell Atlantic and Vodafone Air Touch, now Vodafone Group, announced their agreement to create a new wireless business. The new “Verizon” brand was launched on April 3, 2000, after a six month wait for regulatory approval, and began operating as Verizon Wireless on April 4th. GTE’s wireless operations joined Verizon Wireless thereby creating the nation’s largest wireless company. “Verizon then became the majority owner (55 percent) of Verizon Wireless, with management control of the joint venture” (Varettoni, 2013, p. 3). Upon entering into an agreement to acquire Alltel, Verizon had to meet some conditions of the acquisition. Verizon had to divest overlapping wireless properties in 105 operating markets in twenty-four states. In May of 2009 Verizon entered into an agreement with
Verizon Communications, Inc. was formed on June 30, 2000 with the merger of Bell Atlantic Corporation and GTE Corporation, in New York City and incorporated in Delaware. On July 3, 2000 Verizon began trading on the New York Stock Exchange (NYSE) under the VZ symbol. On March 10, 2010 they began trading on the National Association of Securities Dealers Automated Quotations (NASDAQ). The mergers that formed Verizon had roots going back to the beginning of the telephone business in the late nineteenth century.
With the regulation by the government and the signing of the Telecommunications Act on February 8, 1996, Verizon saw promise of a new competitive marketplace. In 2004 Verizon was added to the Dow Jones Industrial Average. And in 2006, with the addition of MCI, Inc,, Verizon became a leading provider of advanced communications and information technology to large businesses and the government customers worldwide. The merger of Bell Atlantic and GTE was valued at more than $52 billion. The purpose of the merger was to build a dynamic company that is capable of competing in the industry’s top-tier level. It took two years for the merger to close. In the meantime, Bell Atlantic and Vodafone Air Touch, now Vodafone Group, announced their agreement to create a new wireless business. The new “Verizon” brand was launched on April 3, 2000, after a six month wait for regulatory approval, and began operating as Verizon Wireless on April 4th. GTE’s wireless operations joined Verizon Wireless thereby creating the nation’s largest wireless company. “Verizon then became the majority owner (55 percent) of Verizon Wireless, with management control of the joint venture” (Varettoni, 2013, p. 3). Upon entering into an agreement to acquire Alltel, Verizon had to meet some conditions of the acquisition. Verizon had to divest overlapping wireless properties in 105 operating markets in twenty-four states. In May of 2009 Verizon entered into an agreement with
References: Ante, Spencer E. Alltel: A Boon for Verizon Wireless. June 6, 2008. http://www.businessweek.com/stories/2008-06-06/alltel-a-boon-for-verizon-wirelessbusinessweek-business-news-stock-market-and-financial-advice. Form 8-K. Retrieved from http://www.sec.gov/Archives/edgar/data/732712/000119312508131890/d8k.htm. Nicol, Robin. 2009. Verizon Wireless Completes Purchase of Alltel; Creates Nation’s Largest Wireless Carrier Retrieved from http://news.verizonwireless.com/news/2009/01/pr2009-01-09.html O’Brien, Casey and LaFerney, Julianna. 2009. Telecom Mergers & Acquisitions: Economical & Technological Effects Verizon & Alltel as a Case Study. Sorkin, Andrew Ross and Holson, Laura M. 2008. Verizon Agrees to Buy Alltel for $28.1 Billion. Retrieved from http://www.nytimes.com/2008/06/06/technology/06phone.html?_r=0. The History of Alltel. (n.d.). Retrieved from http://www.webhostingreport.com/learn/alltel.html. Varettoni, Bob, Verizon Media Relations, archived press releases. Last updated 2013. History of Verizon Communications Inc. Verizon Communications 2009 Annual Report. Retrieved from http://www22.verizon.com/investor/app_resources/interactiveannual/2009/downloads/09_vz_ar.pdf Verizon Wireless to Acquire Alltel For $28.1 Billion. Retrieved from http://www.forbes.com/2008/06/05/verizon-alltel-acquisition-tech-cx_pco_0605paidcontent.html.