Verizon Communications considers its options with Verizon Wireless and Vodafone PLC

Verizon Communications considers its options with Verizon Wireless and Vodafone PLC
Verizon Communications has been thinking about what to do with its 55% stake in the largest mobile operator in the United States, Verizon Wireless. The remaining 45% is owned by European company Vodafone PLC. As recently as December, there was talk about combining both stakes in a merger. But talks fizzled over such matters as leadership and where the new company would be located. As a result, it would appear that a full buy out by Verizon of Vodafone's stake, or a partial purchase of the European firm's 45% ownership of Verizon Wireless seems likely.

Verizon Communications wants to retain as much of Verizon Wireless as possible because it is its most profitable division. Amazingly enough, the smartphone business (manufacturing, selling and activating the devices) has pretty much resisted the worst of the recession. Vodafone would seem ready to sell its stake in Verizon Wireless as the company has started on its plan to eliminate stakes in companies it does not control. It's 45% ownership in Verizon Wireless would fit the definition. Additionally, Vodafone has been pressured by stockholders to streamline its businesses since many of its institutional stockholders believe that the company is worth more broken apart.

According to Bloomberg, there are no current plans to merge the two stakes in Verizon Wireless although sources for the news agency say that talks will resume sometime this year. Neither side will comment and Bloomberg reports that "deliberations over the sale of Vodafone's Verizon Wireless stake haven't progressed to substantial negotiations."

sources: Reuters

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10 Comments

1. vincent95

Posts: 17; Member since: May 19, 2012

If you want to raise the profit of your businesses, why not bring back Unlimited Data? Or at least let customers who want to upgrade keep it!

3. belovedson

Posts: 1061; Member since: Nov 30, 2010

that makes absolutely no sense.

4. alouden unregistered

I like unlimited data too, but I agree with belovedson: it makes no sense.

5. ayephoner

Posts: 858; Member since: Jun 09, 2009

well, it would retain customers. that is one of the big reasons (of many) that i left verizon. of course, i transferred my unlimited plan to a friend, so technically they didnt lose a customer. i guess.

6. annonymous1

Posts: 15; Member since: Dec 16, 2011

how did you transfer your unlimted plan to a friend???? i would like to know because my friend wants to upgrade his phone to a new phone but doesnt wanna pay full price so hes going to get rid of his unlimited plan, but i want it. So how did you do it???

7. laheelahee

Posts: 213; Member since: Apr 09, 2012

assumption of liability

10. VZWEMPLOYEE

Posts: 34; Member since: Jun 13, 2009

Your comment is off base. Verizon Wireless has the lowest churn out of all companies look at the numbers

9. VZWEMPLOYEE

Posts: 34; Member since: Jun 13, 2009

Verizon Wireless is the most profitable wireless company YOY and has the lowest churn of all companies. LTE is the future At&t was late but is on board Sprint is broke but trying and T-Mobile is a none factor. Look at the numbers which are published

2. luis_lopez_351

Posts: 951; Member since: Nov 18, 2010

What are the pros and cons to this? this is very poor news reporting. Is someone holding back the truth, or not digging hard enough.

8. Reluctant_Human

Posts: 913; Member since: Jun 28, 2012

It would make no sense for Vodafone to sell their share of VZW. All they have to do is sit back and cash a check that gets larger every year.

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