Verizon Said to Be Selling Data Centres for $2.5 Billion

by Istvan Fekete on January 6, 2016

Verizon-logo-bigCiting sources familiar with the matter, Reuters reports that Verizon will launch an auction to sell data centre assets in the hope of fetching more than $2.5 billion as the wireless player aims to focus on its core business.

Selling data centres is just one of several moves the carrier has made to realign its asset portfolio. Last year, the telco started the process of selling its wireline properties in three states – California, Florida, and Texas – to Frontier Communications for $10.5 billion. The deal was approved by California’s public utility commission (CPUC) in December, which means the last regulatory roadblock has been successfully removed. Now it is only a matter of time before the deal is closed according to schedule later this year.

Verizon has also sold its wireless towers to American Tower.

If Verizon finds a buyer for its data centres, it would mark the end of a foray into the business it started five years ago when it acquired Terremark. Verizon currently has 48 data centres, which currently generate earnings of roughly $270 million per annum.

“The enterprise telecommunications industry has had to adapt in recent years to corporate customers seeking more sophisticated and cheaper offerings to manage their data. Verizon joins a host of its rivals in telecommunications who are shedding their data centers,” the Reuters report reads.

Also, it is worth adding that Verizon is rumoured to be selling its entire enterprise business for $10 billion, a unit that includes a 2006 acquisition of the former MCI.

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Written by: Istvan Fekete. www.digitcom.ca. Follow TheTelecomBlog.com by: RSS, Twitter, Facebook, or YouTube.

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