Verizon acquires Vodafone's take in Verizon Wireless for $130 billion

Verizon Wireless, the biggest wireless carrier in the U.S., is now fully in control of its previous majority shareholder Verizon. That company announced today that it has bought the other 45 percent stake in the company it did not own from UK-based Vodaphone for $130 billion.

No, the "$130 billion" figure isn't a typo. In fact, today's announcement is supposed to be the third largest corporate deal in history. Verizon is paying $58.9 billion in cash for Vodaphone's stake along with $60.2 billion in common stock and $5 billion in notes. Verizon is also selling off its 23.1 percent minority stake in Vodafone Omnitel for $3.5 billion and the remaining $2.5 billion comes from an unnamed "combination of other consideration."

The final deal is expected to be approved and closed by the first quarter of 2014. Verizon Wireless customers won't likely see much of a difference immediately, but it's possible that Verizon will use their full control of their subsidiary to try out some new business ideas such as launching no contract phone businesses such as AT&T has done with Aio Wireless or like T-Mobile is doing with letting people pay a small upfront fee and then pay for the rest of the phone on a two year contract.

Source: Verizon | Image via Verizon

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Verizon just launched a new program called EDGE I believe and it allows you to upgrade when ever you want but with some stipulations. Current Verizon customers is not a real problem as long as they are in good standing and current with their bill. New customers much go through a credit check first and then enroll.the new program has pros and cons. One pro is that you no longer have to pay in full for a new mobile but instead with monthly payments, if you have your new mobile paid by 50% in six months you can upgrade again with no fees. I am thinking about enrolling for this and it will not effect my current subscription but some with unlimited data has many question still to be answered.

Vodafone was losing monies and in the red for some time now, it is a good move for Verizon & Vodafone overall. Both will get what they want. Verizon full control and Vodafone much needed monies.

warwagon said,
Damn, that company has / had a lot of money laying around

Not that the cash portion is anything to sneeze at, but looking at the breakdown, it looks like they had to really scrape the entire amount together... Amazing that the stake would be worth that. Unreal.