Verizon names tech chief CEO, prioritizes 5G network over content

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The unexpected appointment of Hans Vestberg indicates that Verizon may not acquire a media / content company to rival AT&T.

Investors would be wondering if Verizon new CEO Vestberg is the right candidate to lead the telecom giant.

Lars Soderfjell, a portfolio manager at Finnish bank Alandsbanken, which owns Ericsson shares, said Vestberg pushed to expand the company's services unit, which included managing networks for mobile operators. The Justice Department is now making attempts to block AT&T's plan to acquire Time Warner, CNN's parent company. "Importantly, Hans is an inspiring leader, with high energy and a passion for delivering on the core values that truly make Verizon the world leader it is today".

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Born in Hudiksvall, Sweden, Vestberg started at Ericsson in 1991, rising through the ranks to assume the CEO position in 2009. He pioneered the success of Verizon's switch to 4G LTE and has staged the company's plans to build a 5G wireless broadband network.

Vestberg earlier served as CFO at Ercisson. Before joining Verizon, he worked at the networking and telecommunications company Ericsson, where he served six years as chief executive and president and also was chief financial officer. McAdam is retiring this year, and once he does retire, he will transition into the non-executive chairman of the company.

Current CEO Lowell McAdam, 64, will step down on August 1, seven years after he took the helm of the company.

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The outgoing CEO said he believes in the power of change to drive long-term growth and innovation and for Verizon, the time for a change in leadership is now.

Keeth continued, "On behalf of the entire Board, we thank Lowell for his almost two decades of service to Verizon and the valuable contributions during his tenure as CEO". Companies are now more focused on growing the number of customers with varied strategies. McAdam had been the CEO of Verizon since 2011, and he became executive chairman in 2012. Since that time, Verizon has made more than Dollars 120 billion in capital investments, in addition to AWS, Straight Path and other spectrum purchases, and pursued an M&A strategy focused on mobile, media and broadband services.

Under McAdam, Verizon expanded into content when it bought media sites AOL and Yahoo, creating a media division called Oath past year, which also owns sites like Tumblr and HuffPost.

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