An Oregon newspaper is reporting that Verizon plans to offload its cable and phone operations in Oregon, Washington, and 11 other states so that it can put more focus into its wireless and high-speed Internet ventures.
One of the biggest customers in Verizon's fire sale is Frontier Communications Corp. Frontier will reportedly spend $5.3 billion in stock acquiring Verizon's phone and cable lines in several different markets, almost tripling its size when the deal is complete. There is some concern, however, that Frontier might be getting in over its head, but the company says otherwise.
"We don't feel like we're biting off more than we can chew," said Frontier spokesman Steven Crosby. "It's not like we're going to be getting rid of employees. We're going to be bringing employees with us, 11,000 of them."
The deal will leave Verizon investors with about two-thirds of Frontier's shares, while Frontier will inherit mostly older phone lines.