Wednesday, May 18, 2016

Verizon to pay Vodafone $130 billion for its 45% stake in Verizon Wireless

Verizon has rched an agreement with Vodafone to purchase its 45% stake in Verizon Wireless for roughly $130 billion, according to a new report from The Wall Street Journal. The outlet says that the dlisn’t final yet, but it could be announced as soon as Monday.The acquisition would be the second-largest ever of its kind, coming in about $40 billion behind another Vodafone dl—a $172 billion buyout of Mannesmann AG in 1999—and would cement Verizon’s control of the biggest wireless carrier in the US by subscriber base…The Journal’sSpencer E. Ante andCostas Parisreport:“Verizon will pay roughly $130 billion for Vodafone’s 45% stake in Verizon Wireless, one of the people said. The terms still needed to be approved by the companies’ boards, but if all goes well a dl could be announced as soon as Monday afternoon, the people said.Vodafone’s board was meeting Sunday to discuss the dl, and Verizon’s board was to meet after hring the result, people familiar with the matter said.”The pair go on to say that while a of details surrounding the secretive agreement are still unknown, sources have told them that under the terms, Verizon would pay for Vodafone’s 45% stake in Verizon Wireless with roughly equal portions of both cash and stock.Founded onApril4,2000 as a joint venture from Verizon and Vodafone, Verizon Wireless has just over 110 million subscribers, making it the largest carrier in the US and 16th in the world. Last quarter,the companyannouncedthat it garnered a cool $29.8 billion in revenue.The backbone of its success thus far has been its wireless network. Verizon was the first carrier in the US to rollout LTE on a large scale, and it has been at the forefront of the 4G tech ever since. It currently has the largest andmost reliableLTE network in the country.

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