Verizon, who recently agreed to buy out Vodafone’s holdings in Verizon Wireless, has completed the transaction. Vodafone held a 45% share in Verizon Wireless, which was purchased for $130 billion. The deal gives Verizon total stake in themselves as the nation’s largest mobile carrier.
Part of the agreement was that Verizon make some 1.2 billion shares of stock available to Vodafone shareholders. Verizon also borrowed $6.6 billion to satisfy the cash portion of the deal, and we’re advised by the likes of Barclays and BofA Merrill Lynch. The wireless venture was started in 2000 by Verizon and Vodafone, and now boasts annual revenue of $81 billion.
“Over the past 14 years, Verizon Wireless has become the largest and most profitable wireless company in the U.S., and this could not have been achieved without the successful partnership between Verizon and Vodafone” said Verizon CEO Lowell McAdam. “Acquiring Vodafone’s stake in Verizon Wireless provides us with opportunities for greater financial flexibility, enhanced operational efficiency and innovations that will benefit customers. We are confident it will fuel further growth in our business.”
Verizon is already the leading US carrier, and a more nimble one with the exit of Vodafone. They’ve made some salient moves in recent months, with their early opt-out scheme and new “More” plans. There was ongoing tension with Vodafone, and now that those are over, we’ll look forward to more great things from Verizon.