Verizon officially agrees to purchase Vodafone's stake in Verizon Wireless for $130 billionAlex Wagner - Deputy Managing Editor, News Desk
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.