Shares of Verizon Communications Inc. dove toward a 12-year low Friday, after Bloomberg reported that Amazon.com Inc. was in talks with the company and some other wireless carriers about offering services — possibly for free — to Prime members.
The report also pushed AT&T Inc.’s stock
toward the lowest close in nearly eight months and T-Mobile US Inc.’s shares
toward a near one-year low, but sparked a big bounce in Dish Network Corp.’s stock
off a 24-year low.
Citing people familiar with the situation, the Bloomberg report said Amazon has been negotiating with Verizon, T-Mobile and Dish, as well as with AT&T, for the past six to eight weeks, to get the lowest wholesale prices.
That would allow Amazon to offer its Prime subscribers wireless plans for $10 a month, or possibly free, the Bloomberg report said. The plan could take several more months to launch, the report said, and could also be scrapped.
Amazon spokesperson Bradley Mattinger told MarketWatch the company is “lways exploring adding even more benefits for Prime members, but don’t have plans to add wireless at this time.”
Still, Verizon’s stock
dropped 5.0% in morning trading, to pace the Dow Jones Industrial Average’s
decliners, and to put it on track for the lowest close since Aug. 10, 2011.
AT&T’s shares shed 5.2% toward their lowest close since Oct. 12, 2022 and T-Mobile’s shares tanked 9.3% toward their lowest close since June 16, 2022.
T-Mobile, AT&T and Verizon shares ranked 1-2-3 on the list of the S&P 500 index’s
biggest decliners Friday.
Meanwhile, Dish’s stock soared 17.2% to pace the S&P 500’s gainers. The rally comes a day after the stock hit an intraday low of $5.91, which was the lowest price traded during regular-session hours since March 15, 1999.
The Bloomberg report comes about a week after The Wall Street Journal reported that Dish was in talks to sell wireless plans for its new mobile phone service through Amazon’s website, with details of the new plans announced as soon as June.
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