Verizon will decide in the next three months whether or not to put its data centers on the chopping block.
Speaking to investors during the Bank of America Merrill Lynch conference, Fran Shammo, CFO of Verizon, said the company’s sales process was initially delayed because many buyers wanted to see financial statements per data center, and the company didn’t have that information available.
He added that in the next three months the company will report on whether it will move forward with a sale.
Shammo confirmed a report from Reuters earlier this year that said Verizon was considering a possible sale of its 48 data centers, which the company acquired when it purchased Terremark in 2011 for $1.4 billion. The Reuters story said that the company priced its data centers at about $2.5 billion.
Verizon’s purchase of Terremark was a way for the company to enter the cloud services business and compete with larger cloud providers like Amazon Web Services (AWS). However, few telcos have been successful with their cloud strategies and many are now moving away from that business model.
Verizon isn’t the only telco to put its data center business on the chopping block. CenturyLink is also considering selling its data center business. And last October, Windstream sold its data center business to TierPoint for $575 million.