Actionable news
0
All posts from Actionable news
Actionable news in FLTX: FLEETMATICS GROUP PLC,

How Verizon's Recent Purchases Prove It Is Subtly Taking Over The World

How Verizon's Recent Purchases Prove It Is Subtly Taking Over The World - Verizon Communications Inc. NYSE:VZ, Facebook, Inc. NASDAQ:FB

Verizon Communications Inc. VZ doesn't want to be your preferred carrier alone. Rather, it wants its technology to be a part of every mobile gadget and automobile.

The telecom giant's latest moves vindicate the above argument. Before investors digest its $4.8 billion deal to buy the core assets of Yahoo! Inc. YHOO, Verizon agreed to buy FleetMatics Group PLC FLTX for $2.4 billion.

By buying FleetMatics, Verizon is investing in the latest trend of combining automobile and mobile technology. As a CNN Money reported, "Verizon clearly realizes mobility isn't just about people texting, Snapchatting and watching YouTube videos on their smartphones."

Related Link: BTIG Raises T-Mobile's Price Target To $56, Doesn't Expect A Sprint Resurgence

The FleetMatics deal will bring 37,000+ customers to Verizon and 737,000 subscribers for FleetMatics' software, which helps track vehicle location and fuel usage, among other things. It is to be noted that Verizon also bought FleetMatics competitor Telogis in June.

The acquisition of Yahoo shows that Verizon also wants to be part of the mobile advertising and content arena, a move that will put in direct competition with Google, which is owned by Alphabet Inc GOOG GOOGL, and Facebook Inc FB.

Verizon has already integrated itself into other parts of everyday life, as it owns FiOS cable TV service.

If this is not enough, Verizon's next move could be the acquisition of mobile gaming developer. Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management predicted the potential move in the following tweet:

The sensational hit of Pokémon GO could tempt Verizon for making such a move.

New York-based Verizon wants to shift from its traditional business and transitioning itself to a mobile technology giant. The company recently sold its landline operations to Frontier Communications Corp FTR for more than $10 billion. As of June 30, Verizon has cash and cash equivalents of $2.86 billion.

"Verizon realizes there's a lot of money to be made from everything you love to do on your phone and other devices while on the go," the CNN Money report said.

Shares of Verizon closed Monday's regular trading at $54.50.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.