Verizon ‘looking at sale of enterprise business'

Verizon ‘looking at sale of enterprise business'

Verizon is considering selling its enterprise networks and data centre businesses, according to a Reuters report citing people familiar with the matter.

The report says that Verizon wants to focus on its core business, its mobile network in the US, and withdraw from the enterprise business. But no deal is imminent, said Reuters, citing the same unnamed sources.

The part of the company is question includes the former MCI, now Verizon Business, which Verizon acquired in 2006 for $8.4 billion, and the former Terremark Worldwide which it bought in 2011 for $1.4 billion.

Reuters says that Verizon hopes for “as much as $10 billion” from a possible sale. 

The agency quotes Fran Shammo, CFO of Verizon, who said in October that the company continues “to work through secular and economic challenges” with the operation, whose revenue is declining 4.9% year on year, according to the latest figures.

Shammo is due to speak today at the Wells Fargo Securities technology, media and telecoms conference and may address the issue in more detail. 


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