Verizon To Reorganize Business Segments

Verizon Communications Inc said on Monday it will reorganize its business segments into Consumer, Business and Verizon Media Group/Oath to focus on the types of customers it serves.

The reorganization under Chief Executive Officer Hans Vestberg, who was named to the top job on Aug. 1, is a shift from the previous operating structure split between wireless and wireline and included the largest U.S. wireless carrier’s Fios internet and video products.

The company said the new Verizon Media Group/Oath segment will include media, advertising and technology, and be led by Guru Gowrappan, who had been appointed CEO of Oath, the digital media umbrella that includes Yahoo and AOL.

“Content is going to be important for 5G, and we’re doing that within Oath,” Vestberg said in an interview, adding there are no changes in the company’s previous statements that it is focused on its wireless network rather than acquiring media content.

The Verizon Consumer Group will include the consumer segment of the company’s wireless and wireline businesses, and will be led by Ronan Dunne, currently president of Verizon Wireless.

Verizon Business Group will include products and services sold to businesses and government, led by Tami Erwin, who is currently executive vice president of wireless operations.

The changes are effective on Jan. 1, 2019, and Verizon said it expects to begin reporting its financials under the new structure in the second quarter of 2019.

Reuters

Reporting by Sheila Dang in New York; Editing by Jason Neely and Jeffrey Benkoe