Verizon gets a Hans

Company betting on technology with new CEO

Verizon Communications on Friday tapped relative newcomer Hans Vestberg as its next CEO — a move that underscores the company’s continued investment in its network.

Vestberg will succeed Lowell McAdam on Aug. 1. McAdam, 64, the chief executive since 2011, will retire — but remain as executive chairman until Dec. 31.

Vestberg, 52, the CEO of Ericsson until he was ousted in July 2016, was chief architect of Verizon’s 4G LTE rollout and its plans to build a 5G wireless network.

Wall Street shrugged at the news, as shares of Verizon rose 17 cents on Friday, to $49.18.

“While Verizon has made some moves in the media space and smaller investments, things like go90 have not gone well,” said BTIG analyst Walter Piecyk. “Perhaps this [appointment] is a reflection of their retrench-

ment from media and a focus on the network.”

Vestberg had served as chief technology officer for just over a year.

The appointment of Vestberg denotes a point of differentiation between New York-based Verizon and AT&T, according to Piecyk,

who notes that the Texas telecom has opted to focus on building its entertainment portfolio and investing in spectrum.

The Justice Department has sued to block AT&T’s proposed $68 billion acquisition of Time Warner, a pivotal case that promises

to have a huge effect on the media M&A landscape when a judgment comes down next week — no matter how AT&T fares.

If the deal is approved, the analyst noted, the bidding war between Comcast and Disney over Fox’s assets and Sky will heat up. This could

cause Vestberg to “rethink things,” Piecyk said.

If the deal is blocked, Verizon could look at Time Warner as an asset.

“A lot of this M&A action was expected earlier under the new Trump administration,” the analyst said. “There was a pause when the DOJ sued but that pause could be ending on Tuesday.”

For Verizon, other possible — and perhaps more likely — acquisition targets could include Charter Communications or Dish Network. Piecyk noted that the lines between telecom and media companies are becoming increasingly hazy, as wireless firms develop 5G, striking fear into cable companies.

“Those companies will need to enter the wireless space,” he offered. “What’s interesting is we are expecting such change in all of these industries over the next five years.”