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 @
"There is a single light of science, and to brighten it anywhere is to brighten it everywhere." -- Isaac Asimov
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
Retiree Sues Apple For $7,500 for Wiping Honeymoon Photos From His iPhone
November 30, 2015, 10:23 AM
iPhone 7 May Pack 3-4 GB Memory, More Storage; 4-Inch Comeback is Rumored
November 20, 2015, 10:12 PM
OnePlus One, OnePlus 2 Will Receive Android Marshmallow in Q1 2016
November 16, 2015, 9:58 AM
Lenovo Whoa: Motorola Droid MAXX 2 and Turbo 2 Break Cover in Leaks
October 26, 2015, 3:12 PM
Leak: Apple Preps for First Real Android App Foray With New Apple Music App
October 24, 2015, 1:59 PM
Pepsi Smartphone? Empty Calories Coming Soon to the Midrange
October 12, 2015, 11:41 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information