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
9/3/2013 3:55:11 PM
this transaction would make the late Lehman Bros. very jealous, it's a simple case of... see title.
"Let's face it, we're not changing the world. We're building a product that helps people buy more crap - and watch porn." -- Seagate CEO Bill Watkins
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 Teachers Want Parents to Cut-Off Their Children's Internet, Tablet Use at Night
April 17, 2014, 3:40 PM
Quick Note: Chrome Remote Desktop App for Android Launches
April 17, 2014, 9:26 AM
Report: Apple Plans to Integrate Shazam Song Finding Functionality into Siri
April 17, 2014, 9:15 AM
Bring Your Own Battery: LG Isai FL Likely is G3, First U.S. Quad-HD Android
April 16, 2014, 7:38 PM
Project Moonshine: Google's Plan to Flatten Android App Icons Leaks
April 16, 2014, 1:46 PM
Apple, Microsoft, and Major U.S. Wireless Carriers Embrace Smartphone "Kill Switch"
April 16, 2014, 10:08 AM
Most Popular Articles
Cities to Carpoolers: Sharing Your Car is Illegal, We Will Seize Your Cars
April 4, 2014, 9:17 PM
iPad Exploiter is Freed by Federal Appeals Court
April 11, 2014, 7:40 PM
A-10 Warthog May Live to Fight Another Day with Support from Lawmakers
April 14, 2014, 9:41 AM
Taiwan's AOU Claims to Have World's Highest-Res. OLED Smartphone Display
April 11, 2014, 1:44 PM
EFF: NSA May Have Used IRC Botnets to Exploit Heartbleed for Last Two Years
April 14, 2014, 4:43 PM
Latest Blog Posts
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
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information