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Verizon: Potential Terremark Sale Is ‘Factless Conjecture’

**Editor’s Note: Please click here for a recap of the biggest channel-impacting mergers in Sept.-Oct. 2015.**

Verizon’s chief financial officer is denying a Reuters report that it is considering selling off its Terremark data-center unit as well as “the business formerly known as MCI, which provides landline and internet services for large business customers.”

Verizon's Fran ShammoAccording to Fortune, Fran Shammo “strongly denied” recent reports of the sale. The assets are worth an estimated $10 billion.

Terremark, which Verizon purchased for $1.4 billion in 2011, forms the basis of the company’s cloud offering.

The stories are “factless conjecture with no foundation,” Shammo said at the Wells Fargo Securities 2015 Technology, Media & Telecom Conference this week.

Shammo said Verizon will keep funding its cloud business, according to Fortune.

“This is part of our portfolio and we’ll continue to support it,” he said, adding that Verizon has invested hundreds of millions of dollars annually in this infrastructure and will continue to do so.

Other communications giants recently have sold their data-center businesses. Last month, Windstream announced the sale of its hosted unit to TierPoint for $575 million in cash.


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