verizon
Verizon Communications Inc. is an American telecommunications company headquartered in New York City. It is the world’s second-largest telecommunications company by revenue and operates the largest mobile network in the United States, boasting approximately 146.1 million subscribers as of June 30, 2025.
Verizon was formed in 1983 through the merger of Bell Atlantic and GTE Corporation, and it has since expanded its services to include wireless voice and data services, internet services, and enterprise solutions. The company is known for its investments in 5G technology and its extensive network infrastructure across the continental United States.
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Some investors fear that Voice over Internet Protocol (VoIP) will be the death of companies like Verizon, because it lets phone calls bypass the phone companies and travel over the Internet. We doubt that, since established phone companies are bundling services and taking other steps to maintain their profits. However, some companies are sure to profit from VoIP. Avaya is likely to be one of them. That’s why we are adding it to our WSSF Portfolio for Aggressive Growth. AVAYA INC. $10 (New York symbol AV; WSSF Rating: Average) makes telecommunications equipment that helps over one million businesses and government agencies manage their phone and data networks. Avaya was a division of Lucent Technologies Inc. until September 30, 2000, when Lucent handed out its Avaya shares to its investors....
VERIZON COMMUNICATIONS INC. $31 (New York symbol VZ; WSSF Rating: Average) provides local and long distance phone service to 145 million customers in 29 states. Through 55%-owned Verizon Wireless, it offers wireless service to 49 million customers across the United States. It also provides Internet access to homes and businesses, and publishes telephone directories. In January 2006, Verizon acquired long distance provider MCI, Inc. for $8.5 billion in cash and stock. The company hopes that MCI’s large corporate client base and fiber optic network will help it keep up with its main rivals, who are using acquisitions to expand market share. MCI will add about $15 billion to Verizon’s annual revenues of about $75 billion. However, integration costs may hurt Verizon’s earnings growth in the next two to three years. Verizon probably earned $2.55 a share (total $7 billion) in 2005....
We’ve often pointed out that growth by takeover or merger is riskier than internal growth. It’s especially risky when companies make a habit of it. However, well-established companies do sometimes pole-vault over their growth targets with well-thoughtout, well-timed, one-of-a-kind mergers, with or takeovers of, well-established companies that have complementary profit centers or growth potential. These three companies have done just that recently. Right now, however, only two are buys....