News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
GET RECOGNIZED.
Let an ISACA® certification
elevate your career.

Register today and save
You are here: Home / Microsoft/Windows / Verizon Buys Out Vodafone's Stake
DDoS Protection Powered By Verisign
Verizon Finally Seals Deal To Buy Out Vodafone Stake
Verizon Finally Seals Deal To Buy Out Vodafone Stake
By Jennifer LeClaire / NewsFactor Network Like this on Facebook Tweet this Link thison Linkedin Link this on Google Plus
PUBLISHED:
SEPTEMBER
03
2013


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:

Like Us on FacebookFollow Us on Twitter
TOP STORIES NOW
MAY BE OF INTEREST
Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.
MORE IN MICROSOFT/WINDOWS
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Are Government Spies Tipping Off Tor?
Less than a month ago, tech news headlines heralded a Tor Project breach. Now, some are saying that government spies are sharing information with Tor to help it prevent future breaches.
 
Backoff Malware Hits 1,000+ Businesses, Likely More
More than 1,000 businesses across the U.S. might have been affected by Backoff, a new kind of point-of-sale (PoS) malware, according to the Department of Homeland Security.
 
PlayStation Network Back Online After Attack
Sony’s PlayStation and Entertainment Network are back online after a distributed denial of service (DDoS) attack crashed the systems on Sunday. But Sony says no personal info was accessed.
 

Enterprise Hardware Spotlight
Apple Set To Release Largest iPad Ever
Tech giant Apple seems to have adopted the mantra “go big or go home.” The company is planning to introduce its largest iPad ever: a 12.9-inch behemoth that will dwarf its largest existing models.
 
Alert: HP Recalls 5 Million Notebook AC Power Cords
HP is recalling about 5.6 million notebook computer AC power cords in the U.S. and another 446,700 in Canada because of possible overheating, which can pose a fire and burn hazard.
 
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.
 

Mobile Technology Spotlight
Apple Set To Release Largest iPad Ever
Tech giant Apple seems to have adopted the mantra “go big or go home.” The company is planning to introduce its largest iPad ever: a 12.9-inch behemoth that will dwarf its largest existing models.
 
Verizon Hops on the Voice-Over-LTE Bandwagon
Wireless provider Verizon is gearing up for a nationwide launch of its Voice-over-LTE service over the next several weeks, promising clearer and crisper phone calls and a Skype-like video service.
 
Smartphone 'Kill Switch' Law in California; Will Other States Follow?
California’s new law -- signed by Gov. Jerry Brown on Monday -- aimed at deterring cellphone theft could mean most mobile phones sold in the U.S. will soon include similar “kill-switch” tech.
 

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.