Frontier Communications: Time to Move On?
Since Frontier (NASDAQ: FTR) completed its purchase of Verizon's (NYSE: VZ) wireline business in California, Texas, and Florida in April 2016, the news has mostly been bad for shareholders.
The company paid $10.54 billion for approximately 3.3 million voice connections, 2.1 million broadband connections, and 1.2 million cable subscribers. That move was supposed to elevate the company so it could have the operational synergies required to compete with the big boys.
That happened in a way, as the company has been able to cut costs by over $1 billion annually, with more to come, but that may be the only positive for the company. Frontier has lost subscribers and money in every single quarter since the Verizon deal closed. It has also slashed its dividend and reverse-split its stock to avoid being delisted. In a broad sense, the company has left little reason for investors to be hopeful of a turnaround.
Source: Fool.com
Verizon Communications Inc. Stock
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