I have three tactical moves to talk about.
Verizon is acquiring Frontier Communications for $20 billion to expand its fiber network, adding 2.2 million subscribers and enhancing its competitive position against AT&T. The acquisition aims to address Verizon’s slowing revenue and leverage Frontier’s existing infrastructure despite Frontier’s recent financial struggles, including a Chapter 11 bankruptcy in 2020 and legal issues regarding internet speed misrepresentation.
Chris Day, founder of ScalePad, has taken over as CEO, focusing on creating an integrated suite of products rather than pursuing new acquisitions. Outgoing CEO Dan Wensley will remain as a shareholder and advisor. Day aims to double subscription revenue in two years and enhance user experience through technology investments, particularly in data science and AI.
And TechCrunch, with a profile of Fleet, a bootstrapped laptop-leasing startup based in Paris, aims to be the IT companion for small businesses by offering hardware leasing alongside software services like device management and cybersecurity. Despite challenges in the French tech ecosystem, Fleet has diversified its revenue and client base, now serving 1,500 companies across 120 countries. The company focuses on optimizing operations without external funding, emphasizing its vision to provide an all-in-one IT solution for small and medium enterprises.
Why do we care?
Verizon’s acquisition shows a continued lack of competitiveness in connectivity in the US. There is now one less player.
I will generally observe that a founder’s return is not an endorsement of the management that is leaving. I have some bias here — I’ve worked for Dan Wensley on the vendor side. Something wasn’t happening as fast as ownership wanted. So here, we’re looking for a change in strategy.
Thanks to listener William for the attention to Fleet. Consider an organization handling the hardware and software stack as a full lease for SMBs and doing it entirely bootstrapped. It sounds just like an MSP.