Fly News Breaks for June 19, 2019
VZ, TMUS, DISH, S
Jun 19, 2019 | 15:38 EDT
Citi analyst Michael Rollins said he sees "several benefits" for Verizon (VZ) if the company were to acquire Dish (DISH), including accelerated access to mid-band spectrum for 5G use, improved annual programming costs for FiOS, and the potential for such a deal to reduce some uncertainty in the industry by eliminating the "possibly disruptive scenario" for the proposed merger of Sprint and T-Mobile (TMUS). Even if Verizon were to pay $95 per share in a theoretical takeover, the deal would potentially be only moderately dilutive, said Rollins.
News For DISH;VZ;S;TMUS From the Last 2 Days
Jul 22, 2019 | 14:40 EDT
AT&T (T) is scheduled to report before the market opens on July 24, while Verizon (VZ) is scheduled to report quarterly results before the market opens on August 1. What to watch for: 1. AT&T'S OUTLOOK: When AT&T reported its first quarter results on April 24, the company announced during its Q1 earnings conference call that it was "on track and ahead of schedule" with its 2019 goals. AT&T said it was on track to generate at least $26B of cash this year. Management noted that they were pleased with the company's wireless performance. On May 14, AT&T affirmed its FY19 EPS guidance of low single-digit growth. The company also affirmed its FY19 free cash flow outlook of about $26B, gross capital investment in $23B range, and a dividend payout ratio in the high 50%. 2. HBO MAX: On July 9, AT&T's WarnerMedia unveiled HBO Max as the name of its new streaming service, which will offer a direct-to-consumer experience for everyone ranging from families with young children to adults of all ages. The new service will be "Maximized" with an extensive collection of exclusive original programming and the "best-of-the-best from WarnerMedia's enormous portfolio of beloved brands and libraries," the company said. New deals with Warner Bros. Television and others for HBO Max include: The exclusive streaming rights at launch to all 236 episodes of "Friends"; The exclusive streaming rights at launch to all episodes of "The Fresh Prince of Bel Air" and "Pretty Little Liars"; The exclusive streaming home to a string of new Warner Bros.' produced dramas for The CW beginning with the fall 2019 season, including the new DC Entertainment series "Batwoman," and "Katy Keene." New exclusive movie production deals with Greg Berlanti and Reese Witherspoon. Berlanti will produce an initial four movies focused in the young adult space, while Witherspoon will produce at least two films. HBO Max, scheduled to launch commercially in spring of 2020, is anticipated to premiere with 10,000 hours of premium content. 3. VERIZON'S OUTLOOK: When Verizon reported its first quarter results on April 23, the company issued guidance saying it sees FY19 adjusted earnings per share up low single-digit percentage range and FY19 revenue up low single-digit percentage range. This differs from the guidance Verizon issued with its Q4 results, where it said FY19 adjusted EPS would be "similar" to FY18 adjusted EPS result of $4.71. The FY19 revenue guidance is unchanged from the guidance issued with the company's Q4 results. The company also noted it is "on track" to reach $10B in cost cuts by 2021. 4. VERIZON LOOKED TO SELL YAHOO FINANCE: On July 11, Reuters' Angela Moon and Sheila Dang reported that earlier this year, Verizon searched for buyers for Yahoo Finance, citing three people familiar with the matter. While the U.S. wireless carrier never initiated a formal sales process, it quietly sounded out interest in Yahoo Finance even as it was revamping its media business, Moon and Dang added. The company terminated its search recently, the authors noted.
Jul 22, 2019 | 09:17 EDT
Verizon announced the launch of Software-Defined Interconnect, a solution that works with Equinix Cloud Exchange Fabric, offering organizations with a Private IP network direct connectivity to 115 International Business Exchange data centers around the globe within minutes. SDI addresses the longstanding challenges associated with connecting customer networks to colocation data centers. To do this over traditional infrastructure requires costly build-outs, long lead times and complex provisioning. The SDI solution leverages an automated Application Program Interface (API) to quickly and simply integrate pre-provisioned Verizon Private IP bandwidth via ECX Fabric, while eliminating the need for dedicated physical connectivity. The result is to make secure colocation and interconnection faster and easier for customers to implement, often at a significantly lower cost.