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This latest acquisition rumor concerning the fate of Vodafone and Verizon is a doozy. While it was initially believed that Vodafone would sell back its 45 percent stake in Verizon Wireless to the carrier’s parent company, the deal could go the other way with the help of a surprising partner. According to a report from The Financial Times‘ Alphaville blog, Verizon could acquire Vodafone at a price of $245 billion as a joint venture with AT&T.
If it sounds unbelievable, it’s because it is. There isn’t much to back up the initial report, making most skeptical about a deal of this magnitude getting done. Not only would it be one of the largest buyouts of all time, but it would also feature two market rivals cooperating on the endeavor. Let’s not even mention the regulatory hurdles that would need to be jumped in order of the US-based carriers to purchase the multinational Vodafone. Remember when AT&T couldn’t even secure enough signatures to finalize a deal to buyout T-Mobile? Yeah, we’d say this has even less of a chance of happening.
Of course, there is a chance that it will happen, which could lead to a pretty big shakeup in the global wireless industry. How it would affect Verizon and AT&T’s current relationship remains to be seen.
[via GigaOM]
From the way I understood it, Verizon would get full control of Verizon wireless from Vodafone while AT&T would get Vodafone’s Non U.S. assets giving them the opportunity to set up shop in Europe.
and then get shut down by t-mobile overseas
Not saying this is a legitimate rumor, but still… What does AT&T being unable to close the T-Mobile deal in the U.S. have anything to do with a purchase abroad. The primary concern was that they were taking out a competitor in the market and consolidating all GSM into one monster of a (U.S.) carrier. Not a concern in regards to Vodafone (assuming the purchase would be for access to the international market).
Correct… FCC doesn’t have any jurisdiction over what happens to Vodafone.
Anyone who doesn’t believe that the US Carrier market is an oligopoly need look no further.
AMEN!!!!
It’s entirely possible, and likely the only way Verizon takes control without needing to first spin off VZW and buying controlling shares… Vodafone is an enormous company, and a lot of blogs only look at market cap (total value of outstanding *publicly* traded stocks) as the only indicator on the value of a company… market cap neglects assets and privately held stock… and a lot of Vodafone’s value is tied up in the worth of their American arm… probably close to half their entire worth.
I’m with everyone else in saying that I wouldn’t just dismiss this rumor since there is strategic logic for both Verizon and AT&T behind it and there isn’t any reason why it wouldn’t be feasible.
A buyout from either of those companies will totally screw up the international wireless industry let alone both teaming up to purchase Vodaphone, yikes what a scary thought that would be wherever Vodaphone has service.
This is such a stupid headline!!! This isn’t everrrrrrr going to happen. Just one point, did ATT & Vzn even have $245bln combined? I’d be absolutely shocked if ATT & Vzn had $100bln combined cash! This is such a stupid headline.
Verizon: $230 billion (total assets) / $85 billions (total equity)
ATT: $272 billion (total assets) / $97 billion (total equity)
Deal would be for X% (via cash & stock purchase) & finance the balance…
That said, yeah I don’t see this happening.
All I have to add to this, is that should this by chance happen….. my advice to you European Vodafone subscribers……is run like hell to the nearest competing carrier ….. Trust me, you don’t want any shape or form of AT&T influence in your affairs.
100 billion premium over today’s vodafone market cap. april fools.
http://news.cnet.com/8301-1035_3-57577445-94/verizon-at-t-could-partner-to-take-over-vodafone-report/
Verizon literally gains nothing if this rumor is true (Vodafone owns almost no spectrum in the US). I call fake.
It’s a nonsense, BS rumor. Ignore it.