Verizon's Record Deal | Investor Beat - 9/11/13 | The Motley Fool

TL;DR

Verizon is launching the largest corporate bond in history, raising $49 billion to pay for its acquisition of Verizon Wireless.

Transcript

Verizon is Raising billions of dollars is this cuz I didn't pay my bill investor beat starts now thanks for watching I'm Chris Hill mixed day on Wall Street with the Dow up but the NASDAQ being pulled down thanks largely to the bad day that apple is having joining me in studio today Matt copenhaffer Matt Argos singer guys our top story Verizon is l... Read More

Key Insights

• 🍳 Verizon's record-breaking bond offering will finance its acquisition of Verizon Wireless.
• 🤨 The large amount of debt Verizon will take on raises concerns among shareholders.
• 🤨 Cheap borrowing costs may lead to more companies raising debt in the future.
• ❓ Verizon's stock has underperformed the market in recent years.
• 🤝 Apple's stock is down due to the disappointing news of the China Mobile deal not happening.
• 😮 Polycom plans to buy back $400 million of its stock, which could be a good move if demand for their products rises.
• 📻 Pandora is not worried about competition from Apple's iTunes radio and may benefit from the increased interest in internet radio.
• 🛀 Facebook's stock price has significantly increased since November 2012, showing that the market can be irrational at times.

Questions & Answers

Q: Why is Verizon raising $49 billion?

Verizon is raising this record-breaking amount of money to pay for its acquisition of Verizon Wireless.

Q: Why are shareholders concerned about the deal?

Shareholders are concerned about the large amount of debt that Verizon will be taking on as a result of this acquisition.

Q: Will other companies follow suit and raise debt due to cheap borrowing costs?

Yes, the strong demand for Verizon's bond offering suggests that more companies may look to raise debt in the future.

Q: How has Verizon's stock performed in recent years?

Verizon's stock has not performed well compared to the overall market in recent years.

Summary & Key Takeaways

• Verizon is launching a corporate bond totaling $49 billion, the largest in history, to pay for its acquisition of Verizon Wireless.

• The deal has raised concerns among shareholders due to the large amount of debt Verizon will be taking on.

• The size of the bond offering and the healthy demand for it suggest that more companies may look to raise debt in the future due to cheap borrowing costs.