Verizon officially agrees to purchase Vodafone's stake in Verizon Wireless for $130 billion

Alex Wagner
Editorial Director of News and Content from  Omaha, NE
| September 2, 2013

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While most folks in the U.S. are enjoying a Labor Day holiday with some grilling or relaxation, Verizon Communications and Vodafone are busy putting an end to years of rumors and speculation.

The two companies just announced that they've reached an agreement that'll see Verizon buy out Vodafone's 45 percent stake in their Verizon Wireless joint venture for a total of $130 billion. Of that total, $58.9 billion will be a cash payment made by Verizon to Vodafone, while around $60.2 billion worth of stock will be handed out to Vodafone shareholders. The remainder of the deal consists of notes payable to Vodafone and other items.

The deal was unanimously approved by the boards of Verizon Communications and Vodafone, allowing it to finally migrate from Rumorville to Officialtown. Now that an agreement between the Verizon and Vodafone has been reached, it must go through the usual regulatory approval process and receive a thumbs-up from the shareholders of both firms. Verizon and Vodafone expect the deal to close in the first quarter of 2014.

Once completed, Verizon Communications will gain 100 percent control of Verizon Wireless. Verizon CEO Lowell McAdam explains that the transaction will allow his firm to "operate more efficiently" and allow it to "provide increased opportunities" in both the enterprise and the consumer wireline markets. 
Today's deal is a biggie, both because of the amount of cash and stock that's changing hands as well as the fact that Verizon Communcations now has full ownership of Verizon Wireless, 13 years after the joint venture was formed. I'm sure that Verizon is pretty pleased to finally be gaining total control of its big red carrier, and it'll be interesting to see what it does once the complete (assuming it gains all of the approval that is needs, of course).
Verizon and Vodafone will be holding a conference call at 8 a.m. ET tomorrow to discuss the deal further, and you can bet that I'll be listening in for any extra morsels of information. Stay tuned.