The global telecommunication leader Verizon is experiencing an unpleasant start for the year, as shares stride down after the Tuesday premarket trading. While the projected deal with yahoo has been pushed all the way to the second quarter of the year, delayed, but will proceed nonetheless.
Verizon has been having a hard time entering the year, last Tuesday the telecom company revealed a fourth-quarter earnings report at 86 percent per share on revenue at $32.34 billion, excluding items. The results were below most forecasts and expectations that global analysts had set, an analyst from a well-known firm reported an expected 89 percent per share on revenue or $32.092 billion forecast for the telecom giant.
Chairman and CEO Lowell McAdam said “In the fourth quarter we expanded our customer base in highly competitive wireless and broadband markets,” he said in a statement. “This capped a year in which we delivered solid results and returned value to shareholders, including $9.3 billion in dividends. We enter 2017 with confidence, based on our investments in next-generation networks and the new capabilities we have acquired. Our goal is to continue to earn our customers’ loyalty every day in a rapidly expanding mobile-first digital world.”
Despite the less than expected outcomes, Verizon seemingly added a net 591,000 retail postpaid subscribers in the quarter and has reported a 114.2 million connection, atop its 1.9 percent year-over-year increase.
Verizon and Yahoo Deal Moved
According to Yahoo’s CEO Marissa Mayer, “The opportunities ahead with Verizon look bright,” and “Our commitment to our users is unwavering, and we continue to be encouraged by their loyalty to us and their ongoing patronage of our products.”
The huge security breaches happened around 2013 and 2014, Verizon said in an interview, “As we’ve said all along, we will evaluate the situation as Yahoo continues its investigation. We will review the impact of this new development before reaching any final conclusions.”
The telecom company assured everyone that it will “continues to work with Yahoo to assess the impact of data breaches.” While the Securities and Exchange Commission will be probing Yahoo for not disclosing appropriately the breaches to its investors.
Go90 Axes 155 Employees
Verizon’s mobile streaming service Go90 has reportedly laid off a total of 155 staffs last week, with San Jose, California’s office taking the hardest hit out of them all. According to the company, they will be rebuilding the whole team and putting a lot of pressure, mostly in the San Jose office, which was largely tasked with product development, business and content operations, and marketing positions.
The company said in an interview, “Our focus with go90 and our Verizon digital media efforts are to fulfill our strategy of leveraging Verizon content investments, enhancing user experience and strengthening our advertising infrastructure. Fulfilling this strategy has resulted in some duplicate resources and has required organizational changes impacting 155 employees as we consolidate offices in Los Angeles, San Jose, and New York. These changes are not indicative of a change in our strategy and we remain committed to rapidly enhancing our existing online video products and delivering new products.”
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