Official: Verizon Buying Vodafone's Stake in Verizon Wireless for $130B
September 2, 2013 4:59 PM
comment(s) - last by
The deal should be completed in the first quarter of 2014
Verizon Communications said it will buy Vodafone's 45 percent stake in Verizon Wireless for
$130 billion USD
According to the deal, Vodafone will receive $58.9 billion USD in cash, $60.2 billion USD in Verizon stock, and $11 billion USD from smaller transactions.
Vodafone will reportedly give 71 percent of the net proceeds to shareholders. All the stock will go to shareholders too, plus $23.9 billion USD in cash.
The deal, which both Verizon and Vodafone's boards approved unanimously, is expected to be completed in the first quarter of 2014.
So what does this mean for both companies? Verizon will have full access to its wireless unit's cash, which will be used to speed up networks and keep competitive. Vodafone, on the other hand, will put $9.3 billion USD into improving its mobile and broadband networks over the next three years.
“This transaction will enhance value across platforms and allow Verizon to operate more efficiently, so we can continue to focus on producing more seamless and integrated products and solutions for our customers," said Lowell McAdam, Verizon chairman and CEO. "We believe full ownership will provide increased opportunities in the enterprise and consumer wireline markets.”
This deal was a long time coming. It all started when Verizon Communications was created in 2000 when Bell Atlantic Mobile and GTE Wireless merged. From there, Bell struck a deal with Vodafone where it invested $49.5 billion USD and Vodafone threw in $40.5 billion USD to create a wireless network.
Verizon Communications almost
succeeded in buying out Vodafone's stake
four years later, but the deal depended on Vodafone's bid to buy AT&T Wireless -- which would have forced it to let go of the Verizon Wireless stake. In the end, Cingular beat out Vodafone's bid for AT&T and Vodafone stuck with Verizon Wireless.
Back in April, Verizon was contemplating a $100 billion USD bid and a 50/50 cash and stock offer for Vodafone's 45 percent stake, but advisers said this figure was too low, valuing the Vodafone holding at about $120 billion USD.
This article is over a month old, voting and posting comments is disabled
9/2/2013 6:23:42 PM
This kind of spam is a dark satire, given that the article's topic is a $130B deal. Yeah, I'd like to make some moneys working from home.
9/2/2013 6:40:15 PM
Meant to down rate the spammer, but accidentally clicked under your name! Doh!! Should be removed now since I replied
“And I don't know why [Apple is] acting like it’s superior. I don't even get it. What are they trying to say?” -- Bill Gates on the Mac ads
Quick Note: Verizon Communications Wants to Buy Vodafone's Wireless Stake for $130B
August 30, 2013, 11:24 AM
Verizon Looking to Buyout Vodafone's Verizon Wireless Stake for a Cool $100B+
April 25, 2013, 10:00 AM
UK Drivers Must Now Give Their Cell Phones to Police After a Crash
July 29, 2014, 4:37 PM
Ford to Switch 3,300 Employees from BlackBerries to Apple iPhones by Year's End
July 29, 2014, 2:08 PM
Quick Note: Hilton Hotels to Use Smartphones as Room Keys, for Check-In/Check-Out
July 29, 2014, 12:53 PM
Verizon Wireless to Receive Exclusive "HTC One (M8) for Windows" Smartphone
July 29, 2014, 9:13 AM
Report: Microsoft's Chinese Offices Raided
July 28, 2014, 9:16 PM
Cell Phone Unlocking Bill Heads to President Obama's Desk
July 28, 2014, 11:58 AM
Most Popular Articles
Kindle Fire Phone Review Roundup -- A Solid "Meh"
July 23, 2014, 2:09 PM
Ford Details ’15 F-150’s 325hp, 2.7L EcoBoost V6; Demonstrates 732-lb Weight Loss
July 22, 2014, 6:55 PM
Windows 9 Will Merge Windows, Windows Phone, Windows RT in 2015
July 23, 2014, 3:33 PM
Comcast Memo: Harassing Customers During Retention Calls Actually IS Our Policy
July 22, 2014, 5:19 PM
Sony's Xperia Z3 Gets Detailed in Leaked Photos
July 25, 2014, 2:30 PM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information