Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Microsoft/Windows
Gartner's #1 for endpoint backup
Average Rating:
Rate this article:  
Verizon Finally Seals Deal To Buy Out Vodafone Stake

Verizon Finally Seals Deal To Buy Out Vodafone Stake
By Jennifer LeClaire

Share
Share on Facebook Share on Twitter Share on Linkedin Share on Google Plus

"There's both a good part and a bad part" to Verizon's agreement to buy out Vodafone's stake, said analyst Jeff Kagan. "It's fortunate that Verizon got this deal done now because Verizon Wireless is only increasing in value and it will only cost more as time goes by. It's unfortunate that Verizon had to wait this long and pay this much."
 


After years of on-again, off-again talk, Verizon Communications and Vodafone have finally inked a deal over the wireless assets they jointly own. Verizon will acquire Vodafone's 45 percent stake in Verizon Wireless for $130 billion in a cash-stock deal. The transaction is expected to close in the first quarter of 2014.

When the ink dries, Verizon will own 100 percent of the largest wireless carrier in the United States. The company said the wireless division will be better equipped to leverage changing competitive dynamics in the market and capitalize on the evolution of consumer demand for wireless, video and broadband services.

"The capabilities to wirelessly stream video and broadband in 4G LTE complement our other assets in fiber, global IP and cloud," said Lowell McAdam, Verizon chairman and CEO. "These assets position us for the rapidly increasing customer demand for video, machine-to-machine and Big Data. We are confident of further growth in wireless, and our business in its entirety."

Timing Was Right

Continuing to make his case for the megadeal, McAdam said the acquisition will enhance value across platforms and allow Verizon to operate more efficiently, so the company can continue to focus on "producing more seamless and integrated products and solutions for our customers."

McAdam also believes full ownership will drive new opportunities in the enterprise and consumer wireline markets. His conclusion: "The timing was right to execute a transaction that benefits both companies and their shareholders."

Reacting to the deal, Jeff Kagan, an independent wireless analyst, told us Verizon has been trying to acquire the Vodafone portion of Verizon Wireless for many years and it's great news for the U.S. carrier on several fronts.

"One of which is the world is rapidly moving toward wireless and there are still enormous opportunities for growth going forward," Kagan said. "That means even though they paid quite a bit to get this deal done, it could still be a very good deal for them going forward."

Worth the Wait?

Verizon Wireless already owns 100.1 million retail connections and operates the country's largest 4G LTE network. As of July 2013, the network was available to 301 million people in 500 markets across the U.S. As of the end of the second quarter of 2013, the company had 73,400 employees and operated more than 1,900 retail locations in the U.S.

"There's both a good part and a bad part to this deal. It's fortunate that Verizon got this deal done now because Verizon Wireless is only increasing in value and it will only cost more as time goes by," Kagan said. "It's unfortunate that Verizon had to wait this long and pay this much. If they had just done this deal years ago it would have cost them much less."

As Kagan sees it, waiting may have cost Verizon a pretty penny, but at least the company will now finally own all of Verizon Wireless. That, he said, means they now control the direction of the company, for better or worse.
 

Tell Us What You Think
Comment:

Name:



Get Powerful App Acceleration with Cisco. In a world where time is money, you need to accelerate the speed at which data moves through your data center. Cisco UCS Invicta delivers powerful, easy-to-manage application acceleration for data-intensive workloads. So you can make decisions faster and outpace the competition. Learn More.


 Microsoft/Windows
1.   Windows 9 Preview Date: Sept. 30?
2.   Price Wars Hitting Laptop Market?
3.   Office 365 Tailored for Attorneys
4.   Plan Your Move from Windows 7 Now
5.   Microsoft Patch Tuesday Stars IE


advertisement
China Puts Microsoft Under the Lens
Official anti-monopoly probe launched.
Average Rating:
Plan Your Move from Windows 7 Now
But don't rush to deploy Windows 8.
Average Rating:
Dynamics CRM Online Extends Reach
Now available in 17 more countries.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
UPS Stores in 24 States Hit by Data Breach
Big Brown has been breached. UPS said that about 105,000 customer transactions at 51 of its UPS Store locations in 24 states could have been compromised between January and August.
 
Cost of Target Data Breach: $148 Million Plus Loss of Trust
The now infamous Target data breach is still costing the company -- and its shareholders -- plenty. In fact, the retailing giant forecast the December 2013 incident cost shareholders $148 million.
 
Aruba Networks Handles Black Hat with Aplomb
It's not an easy job. Aruba Networks' task throughout the Black Hat USA conference in Las Vegas this month was to ensure thousands of attendees could connect without malicious attacks.
 

Enterprise Hardware Spotlight
Acer's New Desktop Box Rides the Chrome OS Wave
Filling out its Chrome OS line, Acer is following the introduction of a larger Chromebook line earlier this month with a new tiny $180 desktop Chromebox and also a smaller Chromebook.
 
Three New Lenovo PCs Aimed at Business Users
Businesses everywhere want computing solutions that do more for less money, and Lenovo has unveiled three new desktop PCs that offer solid computing at a budget-minded price.
 
Aruba Networks Handles Black Hat with Aplomb
It's not an easy job. Aruba Networks' task throughout the Black Hat USA conference in Las Vegas this month was to ensure thousands of attendees could connect without malicious attacks.
 

Mobile Technology Spotlight
Google Glass Adds Voice Access to Phone Contacts
The latest update to Google Glass will let users access their top 20 phone contacts with voice commands alone. A user can then choose a phone call, Google hangouts, e-mail or text messaging.
 
Samsung, B&N Target Amazon with Nook Tablet
They've seen the enemy and it is Amazon. So Samsung and Barnes & Noble are teaming up to combat their common foe with a 7-inch tablet that blends Samsung’s tech, Nook’s content and e-reader platform.
 
Acer's New Desktop Box Rides the Chrome OS Wave
Filling out its Chrome OS line, Acer is following the introduction of a larger Chromebook line earlier this month with a new tiny $180 desktop Chromebox and also a smaller Chromebook.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.