& cplSiteName &

Verizon Could Pay VOD $130B+ for Wireless Stake

Dan Jones
LR Mobile News Analysis
Dan Jones, Mobile Editor
4/29/2013
50%
50%

Think US$100 billion sounds high? Verizon Communications Inc. could pay Vodafone Group PLC up to $137 billion for outright ownership of Verizon Wireless, according to a UBS Securities LLC research note Monday. Analyst John Hodulik did the math, which is actually quite simple:

    We believe Verizon and Vodafone's on-and-off negotiations (often in the press) will pay off with a deal later this year, to the benefit of both companies. Our read of the situation suggests that VZ is willing to pay 7.5-8.0x 2013 EBITDA but Vodafone is looking for 10x. Therefore, we believe the two companies will have to meet in the middle at say, 8.5-9.0x for a deal to happen. This suggests a deal price of US$130B-137B.
That's even higher than the potential $100 billion bid Reuters reported on last week. Vodafone investors have been calling for a larger bid. Vodafone holds a 45 percent stake in Verizon Wireless. Rumors of a buyout have heated up again in the last few months. — Dan Jones, Site Editor, Light Reading Mobile

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
wanlord
50%
50%
wanlord,
User Rank: Light Sabre
4/29/2013 | 7:42:38 PM
re: Verizon Could Pay VOD $130B+ for Wireless Stake
VZT Wireline would have more control to eliminate overlap, merge networks, reduce headcount, etc. Good short term things. Long term, lack of influence from VOD which keeps VZW a somewhat separate entity which has less overhead and moves quicker would mean they would eventually be absorbed into the slow, money losing telecom culture. It's a bad idea...
DanJonesLRMobile
50%
50%
DanJonesLRMobile,
User Rank: Light Sabre
4/29/2013 | 3:56:35 PM
re: Verizon Could Pay VOD $130B+ for Wireless Stake
That's a lot of money for what would outwardly change little.
Featured Video
From The Founder
Light Reading founder Steve Saunders talks with VMware's Shekar Ayyar, who explains why cloud architectures are becoming more distributed, what that means for workloads, and why telcos can still be significant cloud services players.
Flash Poll
Upcoming Live Events
May 14-16, 2018, Austin Convention Center
May 14, 2018, Brazos Hall, Austin, Texas
September 24-26, 2018, Westin Westminster, Denver
October 9, 2018, The Westin Times Square, New York
October 23, 2018, Georgia World Congress Centre, Atlanta, GA
November 7-8, 2018, London, United Kingdom
November 8, 2018, The Montcalm by Marble Arch, London
November 15, 2018, The Westin Times Square, New York
December 4-6, 2018, Lisbon, Portugal
All Upcoming Live Events
Hot Topics
I'm Back for the Future of Communications
Phil Harvey, US News Editor, 4/20/2018
US Investigating Huawei for Sanctions Violations – Report
Phil Harvey, US News Editor, 4/25/2018
Huawei, ZTE in the Eye of a Trade Storm
Robert Clark, 4/26/2018
Qualcomm Profits Hammered by Licensing Disputes
Iain Morris, News Editor, 4/26/2018
Live Digital Audio

A CSP's digital transformation involves so much more than technology. Crucial – and often most challenging – is the cultural transformation that goes along with it. As Sigma's Chief Technology Officer, Catherine Michel has extensive experience with technology as she leads the company's entire product portfolio and strategy. But she's also no stranger to merging technology and culture, having taken a company — Tribold — from inception to acquisition (by Sigma in 2013), and she continues to advise service providers on how to drive their own transformations. This impressive female leader and vocal advocate for other women in the industry will join Women in Comms for a live radio show to discuss all things digital transformation, including the cultural transformation that goes along with it.

Like Us on Facebook
Twitter Feed
Partner Perspectives - content from our sponsors
What's in the Box?
By Huawei
Beginning With the End In Mind
By Kevin Taylor, for Huawei
All Partner Perspectives