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Verizon (VZ) announced that former PayPal (PYPL) CEO Dan Schulman will become its new Chief Executive Officer, replacing Hans Vestberg, who will remain as a special advisor through October 4, 2026. Shares of VZ are trading sharply lower following the announcement, reflecting investor uncertainty around the leadership change and the strategic direction Schulman may take.

• Mr. Schulman, who has served on VZ’s Board of Directors since 2018 and was elected Lead Independent Director in December 2024, brings extensive leadership experience, including nearly a decade as PYPL’s CEO, where he oversaw its split from eBay (EBAY). He also previously held senior roles at AT&T (T), Priceline, American Express (AXP), and Virgin Mobile.
• The transition comes at a critical juncture for VZ, as the company faces rising competition and slowing subscriber growth. In 2Q25, VZ reported consumer postpaid net phone losses of 51,000, an improvement from the 109,000 loss a year earlier, but still highlighting ongoing churn pressure with a 0.90% churn rate.
• Schulman’s appointment follows a wave of spectrum-related activity among competitors -- AT&T’s $23 bln acquisition of EchoStar (SATS) spectrum, and SpaceX’s $17 bln purchase of SAT’s AWS-4 and H-block licenses.
• VZ is reportedly considering acquiring SAT’s AWS-3 licenses to stay competitive in network coverage and capacity.
• Under Vestberg, VZ made heavy 5G investments, but monetizing those assets into stronger market share and revenue growth has proven difficult.
• Schulman will likely focus on digital transformation, customer experience improvements, and monetizing VZ’s 5G platform to reinvigorate growth.

Briefing.com Analyst Insight:

The appointment of Dan Schulman as VZ’s new CEO is not entirely unexpected given his long tenure on the board, but it still surprised some investors who anticipated an internal successor. Schulman’s background in digital payments and customer engagement could bring a fresh perspective to VZ’s growth strategy, particularly in leveraging 5G and enterprise solutions. However, his limited telecom CEO experience may raise execution concerns in an industry facing capital intensity and fierce competition. While the move signals VZ’s intent to pivot toward digital innovation and service diversification, investors appear cautious until Schulman articulates a clearer roadmap to reignite growth and expand profitability.