Has Verizon gotten confused on purchasing companies? Well no. Verizon has now “officially” regained 100% share in Verizon Wireless, for a purchase of $130 Billion.
Back in 1999, Verizon sold 45% share of Verizon Wireless to the British carrier, Vodafone, to assist with getting Verizon Wireless into the global market. The payment to Vodafone is a hefty one as Verizon will pay a mix of $58.9 billion in cash, $5 billion in notes and $60.2 billion in common stock for Verizon. Also included in the deal, Verizon will sell its minority shares in Vodafone back to them for $3.5 billion; leaving Verizon with $2.5 billion worth of Vodafone.
This deal has been going around in a rumor for the past few months and now is official, as stated from both companies. The only remaining steps left in the deal are approval from both the regulatory and shareholders for both sides. These deals do take some time, as payments can take a while along with approval; so don’t expect Verizon to gain its 45% for many months to come.
Verizon’s CEO, Lowell McAdam had this to say:
Quote:
Originally Said by Verizon CEO – Lowell McAdam
“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. We believe full ownership will provide increased opportunities in the enterprise and consumer wire line markets.”
With Verizon’s buyback this is sure to skyrocket Verizon’s stock prices, as this corporation deal is the third-largest in history!
Now, Vodafone remains loyal to nobody leaving other major carriers like AT&T and Sprint up for bidding on the company. Buying such as company would boost customer growth along with an increase in shares. Only time will tell where Vodafone will end up.
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