T-Mobile US Inc (NASDAQ:TMUS) CEO John Legere recently talked about the Verizon Communications Inc. (NYSE:VZ) acquisition of Yahoo! Inc. (NASDAQ:YHOO) and said some unsettling things according to some investors on the way Verizon views its customer base.
The T-Mobile CEO expressed his good luck wishes to Verizon on the acquisition whose value was $4.8 billion. Legere stated that the acquisition is an indicator that Verizon views its customers as units of advertising revenue. What company doesn’t is an open question. The CEO also pointed out that the competitor has invested billions in the acquisition of AOL, Inc. (NYSE:AOL). Verizon’s plan seems to be the development of a media platform that will compete against giants such as Alphabet Inc (NASDAQ:GOOG) and Facebook Inc (NASDAQ:FB).
Legere believes that Verizon’s strategy will not have an impact on T-Mobile which reported that it has registered 1.9 million new customers for the thirteenth consecutive quarter. AT&T Inc. (NYSE:T) had its shot to try and acquire all of Yahoo for $39 billion in 2011 but the deal was blocked by antitrust regulators. T-Mobile was, however, able to make a successful leap when John Legere joined the team in 2012. The company has since then been registering faster growth than its rivals thanks to strategic marketing campaigns and smarter service offerings. Its current enterprise value including debts has spiraled up to $60 billion.
T-Mobile was the only firm to register an increase in wireless revenue within the second quarter with a 13% rise that surpassed Wall Street expectations. It was, therefore, no surprise when Legere started considering mergers and consolidation. The CEO believes that internet and cable companies are interested in venturing into the mobile market. Legere predicted that the thought of consolidation within the four major carriers will in the next five years be a laughing matter. He believes that major internet firms want to get into the mix and that it is inevitable. Legere also highlighted his company’s success in the mobile industry as a vital selling point for future deals.