Verizon suffers worst day since 2002 on SpaceX spectrum deal
-10.14% to $41.65 from $46.35
What moved VZ
- SpaceX agreed to buy an 800 MHz spectrum portfolio, covering up to 14 MHz of paired spectrum, from Grain Management for about $8 billion in cash, a deal still subject to FCC approval.
- Verizon shares closed down 8.75%, their worst single-day performance since July 2002.
- Wells Fargo analyst Steven Cahall said a smaller fourth wireless player entering what has been a three-carrier market is “a net negative, for sure.”
- The spectrum is intended to help SpaceX’s Starlink Mobile service work better inside buildings, extending its ambitions beyond satellite connectivity into conventional wireless service.
- The selloff began in after-hours trading Thursday evening, when Verizon shares had already lost more than 6%.
Sources: The Wall Street Journal · CNBC