Verizon Seeks to Reclaim Business Stake in Los Angeles from US Cellular

Verizon Eyes Buyback of US Cellular Stake, Takes on Competition in Wireless Industry

Verizon Communications Inc. is in talks to buy back US Cellular Corp.’s stake in its Los Angeles business if the companies can agree on a reasonable price, according to Sowmyanarayan Sampath, CEO of Verizon’s consumer division. US Cellular owns a stake in Verizon’s Los Angeles market segment, and Verizon has long been eager to buy it back. However, Sampath said that the company would only strike a deal if the price were right, and it wasn’t clear whether an agreement would be reached.

Sampath also stated that Verizon is looking to restore growth in the market by increasing prices and offering add-on perks such as bundled Netflix and Max streaming plans. Despite this, customer losses have eased but not ended, with the carrier reporting shedding 158,000 retail mobile wireless subscribers in the first quarter. This drop in market share comes after rivals AT&T Inc. and T-Mobile have taken significant portions of the market over the past few years.

Verizon has been struggling to maintain its position as a dominant player in the industry with more than 4 million wireless subscribers across 21 states. The company reported that its portion of the US retail wireless market dropped from 36.5% to 35.2% between 2021 and 2023, according to data gathered by Bloomberg. The Wall Street Journal reported last week that Verizon and T-Mobile USA Inc., another major competitor, were in talks to buy portions of U.S. Cellular as they continue their battle for market dominance.

In conclusion, Verizon is interested in buying back US Cellular Corp.’s stake in its Los Angeles business but only at a fair price that makes sense for them. The company has been struggling with declining market share due to competitors like AT&T and T-Mobile taking over portions of their territory over time. To restore growth, Sampath has hiked prices and offered add-on perks such as bundled streaming plans but customer losses have not ended yet as they continue their battle for market dominance with other major carriers like T-Mobile USA Inc., who are also being interested in acquiring some parts of UCSCo’s assets

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