Are Verizon and AT&T partnering to buy Vodafone?

April 2, 2013
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    Vodafone Logo

    Vodafone, one of the largest mobile carrier conglomerates on earth, is rumored to be the subject of a buyout. An unsubstantiated report suggests that AT&T and Verizon are planning to purchase Vodafone for the sum of $245 billion. That price, which ends up being about $3.93/share, is a 40% premium over the current value.

    Reported by CNET and Financial Times, this is an interesting development in Verizon’s ongoing issues in their partnership with Vodafone. Vodafone and Verizon are often rumored to be disillusioned with one another, and have been exploring options for dissolving the relationship or merging wholly. All manner of avenues have been explored, and a buyout seemed the least likely of scenarios.

    This deal is expansive, but beneficial, to both AT&T and Verizon. According to the anonymous-yet-reliable source, Verizon would get back the 45% stake Vodafone has invested in the company, while the remainder of Vodafone interest outside of the US would go to AT&T. In a nutshell, Verizon gets Verizon, and AT&T gets the world.

    Let’s understand this is a rumor, and nothing official has been confirmed or denied. If it’s in the works, the buyout would have implications worldwide… and that’s significant. AT&T has positioned themselves well to be a truly world-wide carrier, and Verizon has the best network stateside.

    We’ll be keeping an eye on this one, for sure.

    Comments

    • Magnetic1

      I like how this article is trying to pull a fast one.
      We don’t need more bigger telecom companies.
      The $100 a month data plans on any new phones that are hyped on this forum is plenty expensive.
      AT&T and Verizon merger would pretty much get us back to the 70s is it? When AT&T was it?
      This part of this deal would be bad.
      I have a better solution. It’s called lower the monthly data plan under by way of competitive price discovery.
      Regionalize the nationwide telecom companies in the US.

    • Kassim

      Oh dear lord I hope this remains just that…a rumour! No one in their right minds would allow two of the biggest telcos in the world to assimilate another one…talk about anti-competitive practices!!

      Annoyingly, there’s never smoke without fire though…

    • http://www.facebook.com/nschiwy Nick Schiwy

      This isn’t a merger, folks. Did you even read the article? AT&T essentially would be expanding into markets that they previously hadn’t (Europe, Asia, Australia) and Verizon’s status in terms of size wouldn’t change, they would simply regain the full ownership of themselves. I don’t see this as being that big of a deal except for the fact that AT&T would suddenly become the world’s largest cell provider which could either be a good or a bad thing. It could mean going overseas and not having to change your SIM card or purchase an international phone, so consider that a huge plus if you are a current or future AT&T customer, my guess is that if you aren’t now, you might be in the future. I was hoping that the business model that t-mobile has started to press would be the future in the US but this might not set us up well for that. At the same time, Vodafone is a European carrier at heart so maybe their business practices will make it to the states with a deal like this… only time will tell.

    • Abhisshack D

      Seems like April Fool Joke

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