As its market focus changes, CenturyLink may be looking to unload segments of the business that are dwindling in profitability. According to StopTheCap.com, both the landline and residential internet lines of business, among others, are likely to go up on the auction block as CenturyLink re-aligns itself behind its money-making commercial offerings.
When discussing the situation with shareholders, CenturyLink CEO Jeff Storey said, “Let me be clear, we’re early in what I expect to be a lengthy and complex process.
During our review, we will not modify our normal operations or our investment patterns. I can’t predict the outcome or the timing of this work or if any transactions will come from it at all.” He added, “Our focus, though, is value maximization for shareholders. If there are better paths to create more value with these assets, we will pursue them.”
The problem CenturyLink may encounter, speculates StoptheCap.com, is a lack of interest from prospective buyers. Some markets have the ability to expand, but the majority of CenturyLink customers rely on copper wire connections that will not support a 5G upgrade. CenturyLink itself admits to a significant loss of subscribers who have left in search of higher connection speeds. The acquisition of Level 3, a company providing connectivity to the enterprise and wholesale markets, has been a profitable move and a change in direction for CenturyLink.
Companies like Windstream, which has shown an interest in the sort of business that CenturyLink is steering away from are struggling with their own financial issues.
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August 15, 2019