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
after a decade of anticipation
9/4/2013 8:34:48 PM
everything you need to know about this $130 deal @
"It's okay. The scenarios aren't that clear. But it's good looking. [Steve Jobs] does good design, and [the iPad] is absolutely a good example of that." -- Bill Gates on the Apple iPad
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
AT&T Will Also Receive the HTC One (M8) for Windows
August 19, 2014, 9:27 PM
Sharp's "Edge-to-Edge" AQUOS Crystal Smartphone Coming to Sprint for $239 Off-Contract
August 19, 2014, 7:31 PM
After 34 Years With Microsoft, Steve Ballmer Parts Way to Focus on LA Clippers
August 19, 2014, 4:17 PM
HTC One (M8) for Windows Officially Announced for Verizon Wireless
August 19, 2014, 12:15 PM
Quick Note: ASUS Readies Smartwatch for IFA 2014, Shows Teaser Image
August 19, 2014, 9:30 AM
LG Already Gearing Up for G Watch Sequel Next Month
August 19, 2014, 7:54 AM
Most Popular Articles
Lumia 830 Gets Major Upgrades Including New 20.1 Megapixel Toshiba Sensor
August 15, 2014, 6:00 PM
With USB Type-C Spec Finalized, Reversible Cables Will Soon Be Upon Us
August 13, 2014, 8:46 AM
Windows Phone, BlackBerry Smartphone Market Share Falls to 2.5%, 0.5% Respectively
August 15, 2014, 9:44 AM
Update: Samsung Gets Official With 4.7”, Aluminum-frame Galaxy Alpha Smartphone
August 14, 2014, 8:56 AM
GM Concedes That the Cadillac ELR Doesn’t Really Compete with the Tesla Model S
August 15, 2014, 5:42 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