Verizon Communications CEO Lowell McAdam said Verizon Wireless will not expand into the Canadian wireless market following Verizon's proposed $130 billion acquisition of Vodafone's 45 percent stake in Verizon Wireless. He said Verizon will now focus on a "One Verizon" strategy of more fully integrating its wireless and wireline assets in areas such as machine-to-machine and cloud computing.
After years of trying, Verizon Communications finally came to an agreement with Vodafone about resolving their joint-venture. Both will now focus on integrating their wireless and wireline assets. By going separate ways both companies try reach the same destination.
Vodafone, with $130 billion worth of Verizon's money burning a hole in its pocket, could make a move on Liberty Global and its wireline video service business, according to a telecommunications analyst. Such a move could also serve as a way to thwart any takeover by AT&T.
Vodafone said it plans to use some of the $130 billion (€98.7 billion, or £83.5 billion) in proceeds from the sale of its 45 per cent stake in Verizon Wireless to Verizon Communications to "turbo charge" its existing investment strategy in Europe, with £6 billion earmarked for extra investments in networks and services over the next three years.
As had been expected, Verizon Communications and Vodafone reached an agreement in which Verizon will pay Vodafone $130 billion for its 45 percent stake in Verizon Wireless, capping a years-long saga that will give Verizon full control of its wireless operations and deliver a massive payout to Vodafone and its shareholders.
Vodafone may be considering purchasing Liberty Global once it exits its 45 percent ownership of Verizon Wireless, according to Macquarie Equities analyst Amy Yong. Yong's speculation caused Liberty Global's stock price to close at $78.59, up 3.2 percent from the previous day.
AT&T would be interested in exploring options for Vodafone's assets following a potential deal between Vodafone and Verizon Communications in which Vodafone would sell its 45 percent stake in Verizon Wireless to Verizon, according to a Bloomberg report.
This summer, the telecoms sector has been buzzing with a number of events that are set to change our industry in fundamental ways. For those of you coming back from holiday, you've certainly missed a lot! Stay tuned.
After Vodafone confirmed this week it is in talks with Verizon Communications to sell its 45 per cent stake in Verizon Wireless to Verizon, reports now suggest that the remaining Vodafone assets could fall prey to AT&T, which has reportedly been seeking potential European acquisitions this year. Meanwhile other rumours suggest Vodafone could swap its U.S. stake for Liberty Global.
Vodafone confirmed it is in talks with Verizon Communications to sell its 45 percent stake in Verizon Wireless to Verizon, and reports pegged a potential deal with a value as high as $130 billion.