Verizon, Vodafone Agree to $130 Billion Deal, WSJ Reports

[Rawvega]

http://www.bloomberg.com/news/2013-09-01/verizon-vodafone-agree-to-130-billion-deal-wsj-reports-1-.html

 

 

By Theo Mullen - Sep 1, 2013 11:17 AM PT

 

Verizon Communications Inc. (VZ) agreed to acquire Vodafone Plc.’s 45 percent stake inVerizon Wireless in a $130 billion transaction to gain full control of the most profitable U.S. mobile-phone carrier, the Wall Street Journal reported, citing a person familiar.

 

Terms still need approval from the boards of both companies, WSJ said, citing the person.

For Verizon, full control of the largest U.S. wireless carrier will mean access to $21.8 billion in operating income to boost its network as it faces aggressive competition from Sprint Corp. Japan’s Softbank Corp. bought Sprint this year and founder Masoyashi Son has pledged to make the third-biggest U.S. wireless carrier a stronger rival.A deal may be announced as early as tomorrow, as Vodafone’s board is meeting today and Verizon’s board will meet following the results of the action by Vodafone, WSJ said, citing people familiar.

 

To contact the reporter on this story: Crayon Harrison in New York at tharrison5@bloomberg.net

To contact the editor responsible for this story: Nick Turner atnturner7@bloomberg.net

 

 

 

Is this a good thing? Perhaps this large expenditure will keep Verizon from devouring anymore US wireless carriers (few that are left) at least for a little while.

[lynyrd65]

I love that their reasoning is to better compete with Sprint. Cool to see they are now viewed as a threat.

[Bob Newhart]

VZW will need to get their money back somehow, prices will rise.

[irwinshere]

I love that their reasoning is to better compete with Sprint. Cool to see they are now viewed as a threat.

Do you think dish will bid on this just to screw it up?

 

Sent from my Photon 4G using Tapatalk 2

 

 

 

[Paynefanbro]

I love that their reasoning is to better compete with Sprint. Cool to see they are now viewed as a threat.

I've heard an AT&T rep once claim that after Softbank took over most of Sprint, AT&T got really scared.

[gnoj]

VZW will need to get their money back somehow, prices will rise.

 

Almost certainly, and it's another reason not to be a Verizon customer right now. Let the current subs subsidize this massive acquisition.

 

Do you think dish will bid on this just to screw it up?

 

Ergen doesn't have $130B to play with like these mega-corporations do, but if he did he probably would just for the lawlz.

[Rawvega]

VZW will need to get their money back somehow, prices will rise.

 

That's a good thing for the other three major carriers. Of course, AT&T is rumored to want to buy international carrier(s) including perhaps Vodafone afterwards so they may wind up having to increase prices right along with VZW.

[MacinJosh]

That's a good thing for the other three major carriers. Of course, AT&T is rumored to want to buy international carrier(s) including perhaps Vodafone afterwards so they may wind up having to increase prices right along with VZW.

The problem is, Sprint and T-Mobile might do the same, citing the rising costs of network maintenance. I would sure hope not, but it isn't out of reality.

 

 

Sent from Josh's iPhone 5 using Tapatalk 2

[Bob Newhart]

I hope the pre-paid market starts some competition in the US/Canada.

 

The prices in Europe are crazy low when compared with here.

 

Also all carriers will match prices in a round about way, if one adds a 'network maintenance' fee, the others will.

They do dishonest things like that now. CenturyLink just started adding more fees like this a few months ago.

[JeffDTD]

I think verizon may actually have more flexibility with pricing after this. This may also make entry into canada easier. Will they choose to be aggressive? Who knows. The interest on 130B alone is staggering. Verizon will not be able to tolerate sagging profits.

 

Sent from my Note II. Its so big.

 

 

[Mercurial1]

I've heard an AT&T rep once claim that after Softbank took over most of Sprint, AT&T got really scared.

I read an article a while back that said Att hired people to study Softbanks flagship stores in Japan to learn what they do and how to compete against them.

 

Sent from my HTCONE using Tapatalk 2

 

 

[centermedic]

Verizon buying out Vodafone has been rumored for awhile now. It will be interesting to see if Vodafone ok's the deal.

[bigsnake49]

Verizon buying out Vodafone has been rumored for awhile now. It will be interesting to see if Vodafone ok's the deal.

They will, that a lot of money.

[Terrell352]

I know Mr. Son is a BOSS and all but that was a lame excuse. Sprint/Softbank would not be a threat to Verizon for years and even though we would love for them to be a threat now the fact is Sprint is not a threat to the big 2 this year. Tmobile is more of a threat than Sprint is right now as Sprint only has 1900 LTE on about half of there 38000 towers if that. Hope this deal gets shot down because its clear they are trying to kill Sprint as a competitor before they even get a chance to attack. Sore Losers smh

[xcharles718]

It's official.
http://www.theverge.com/2013/9/2/4685156/verizon-wireless-vodafone-stake-purchase-official

[S4GRU]

I know Mr. Son is a BOSS and all but that was a lame excuse. Sprint/Softbank would not be a threat to Verizon for years and even though we would love for them to be a threat now the fact is Sprint is not a threat to the big 2 this year. Tmobile is more of a threat than Sprint is right now as Sprint only has 1900 LTE on about half of there 38000 towers if that. Hope this deal gets shot down because its clear they are trying to kill Sprint as a competitor before they even get a chance to attack. Sore Losers smh

 

Sprint's network plans are a threat to Verizon.  Especially as their LTE speeds start to take a crap on 750MHz.  I love shoving my 2.5Mbps Sprint 3G speedtests in the face of my Verizon friends when their LTE speeds drop to 1-2Mbps at night around here.  

 

Robert

[Terrell352]

As a whole though sprint is not a threat. In central Florida Verizon still is better than sprint in terms of coveage, building penetration, and LTE speeds even in peak hours.Verizon and At&t rules this state with a iron fist and I wish Sprint could better compete.

Sprint's network plans are a threat to Verizon. Especially as their LTE speeds start to take a crap on 750MHz. I love shoving my 2.5Mbps Sprint 3G speedtests in the face of my Verizon friends when their LTE speeds drop to 1-2Mbps at night around here.

 

Robert

[S4GRU]

As a whole though sprint is not a threat. In central Florida Verizon still is better than sprint in terms of coveage, building penetration, and LTE speeds even in peak hours.Verizon and At&t rules this state with a iron fist and I wish Sprint could better compete.

 

Plans.  I said their plans are a threat.  Not the current network position in a specific spot of Marion County.

 

Robert

[Terrell352]

Oh reading to fast lol. Can't wait to see the tables turned one day

Plans. I said their plans are a threat. Not the current network position in a specific spot of Marion County.

 

Robert

[The Dave]

The only taste of LTE that I have had here is the 33 Mbps speedtest that I ran at the Verizon store and the 6 Mbps speedtest that I ran at the Sprint store across the street. That is very arbitrary, I realize. What I do know, though, is that my 3G has become more reliable than the wifi at work and is more responsive than my coworkers 4G LG Optimus Pro on AT&T. Verizon and AT&T would be foolish to not consider Sprint a threat. I am pretty sure that they both hold countless strategy meetings and have quite a few spies who eyeball every move that both Sprint and T-Mobile are doing. Sprint has very aggressive plans for the next few years. If anyone thinks they can sit on their golden horse and wait, they will soon find themselves out of the race.

[Nickel]

I'm excited about sprint, too but you you guys also need to keep in mind that AWS will help Verizon greatly. I wonder if they're considering doing what Sprint is and putting AWS on every site that has band 13.

[WiWavelength]

Plans.  I said their plans are a threat.

 

Planes?  Their planes are a threat?!  Are they weaponized drones?  Everybody, dive for cover!

 

 

AJ

[Rawvega]

I'm excited about sprint, too but you you guys also need to keep in mind that AWS will help Verizon greatly. I wonder if they're considering doing what Sprint is and putting AWS on every site that has band 13.

 

Even if they did that, it would be insufficient. In urban and suburban areas, IMO they need to put LTE AWS on all of their cell sites, not just the ones that they added Band 13 LTE  to.

[Nickel]

Even if they did that, it would be insufficient. In urban and suburban areas, IMO they need to put LTE AWS on all of their cell sites, not just the ones that they added Band 13 LTE  to.

But they've covered their entire network with LTE! /sarcasm.

[WiWavelength]

But they've covered their entire network with LTE! /sarcasm.

 

If the coverage map is true, I will give VZW credit.  It has improved eastern Colorado LTE 750 footprint greatly over the summer.  A few weeks to a few months ago, the LTE 750 site "islands" were all too apparent -- even along the heavily traveled I-70 corridor.  Now, those "islands" have been bridged.  That said, I am placing my bets on repeaters.  They do not require backhaul, just power, maybe even solar power.  They reduce capacity and increase latency.  I could be dead wrong, but I hope to be vindicated.

 

AJ