(Associated Press via NewsEdge) Verizon Communications said that cellular partner Vodafone Group has opted not to sell its 45% stake in Verizon Wireless for at least the next few years.
But even if Verizon won't need tens of billions to fund a cellular buyout, it plans to proceed with a spin-off of its phone book business.
The updates on the two major financial question marks for Verizon, one of the nation's two dominant telecommunications providers, came as the company reported a 24% drop in second-quarter profit despite yet another powerful showing by the cellular business.
The steady, strong growth of the wireless operation, where second-quarter revenue improved 18% to $9.26 billion, has been a double-edged sword dangling over Verizon's stock price.
Full-ownership of Verizon Wireless' profit would help fund a hugely expensive upgrade of the Verizon's traditional phone network with fiber-optic lines to deliver TV and next-generation Internet services. But as the cellular business has prospered, it's market value has soared, fueling worries Verizon might be forced to take on too much debt to buy the Vodafone stake, now estimated to be worth well above $40 billion.
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