CEO of Verizon officially announces that they will buyout Vodafone
Now it is more official than before. On Saturday it was more like a rumor on Sunday it was almost official but now the deal has been confirmed by Verizon. Vodafone’s 45% stake will be bought out by Verizon for the colossal amount of $130 billion.
We can’t say that we were not expecting this and certainly the deal was much anticipated.
However, the confirmation serves. The deal will finally give Verizon the full control over Verizon Wireless and they will not be dependent on anyone else anymore for the decisions that they want to implement in their company from now on.
Now there is also an official statement by the CEO of Verizon. The CEO of Verizon, Lowell McAdam, said the following reagarding the deal:
“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 wireline markets.”
Vodafone had invested in Verizon for the first time a long time ago. Back in 1999 Vodafone invested in Verizon Wireless and then they bought the 45% stake that Verizon is now buying out and it only cost them $70 billion.
Now the price for the same share has almost doubled to $130 billion. For now Verizon is expecting that the full deal to buyout Vodafone will be completed by Q1 2014 and that all depends on the regulatory investigations that are to follow.
For now there is not much to be revealed when the deal is completed there we will actually see how exactly it may affect the whole mobile market and how will Verizon take the decisions from now on. Possibly, there will be some changes in their direction. What do you think?