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3 Reasons Verizon's Tracfone Acquisition Is Brilliant

James Brumley, The Motley Fool
·5-min read
3 Reasons Verizon's Tracfone Acquisition Is Brilliant
3 Reasons Verizon's Tracfone Acquisition Is Brilliant

Verizon (NYSE: VZ) announced on Monday that it plans to acquire relatively small U.S. wireless brand Tracfone from America Movil (NYSE: AMX), for a little over $6 billion worth of cash and stock. While prepaid wireless customers are apt to remain at the lower end of the per-subscriber revenue spectrum, it's a piece of the market that now makes sense to target -- for three overarching reasons. Prior to the advent of COVID-19, Verizon was working on converting its infrastructure from one that relied heavily on hardware to one that will largely be software-based.