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(Image Source: Verizon Wireless)
BY LAUREN ZIMA
Verizon Communications is reportedly buying British telecom company Vodafone's stake in
Verizon Wireless.
"A truly mammoth deal."
"A truly jaw-dropping amount of money, $130 billion."
"One of the biggest corporate deals in history." (Via Sky News)
Vodafone's share in the company is 45 percent.
The Wall Street Journal says an announcement from both boards is expected for Monday, and
that over the weekend Vodafone's board "approved in principle the sale of the stake."
The Verizon/Vodafone partnership has been in place almost 15 years.This would actually
be the second-largest acquisition ever behind another Vodafone deal — the purchase of
Mannesmann AG in 1999.
Verizon Wireless is the United States' biggest wireless operator, and the deal has reportedly
been talked about for some time. It was just about finding the right price.
It would be in just about equal cash and stock portions. Verizon is expected to take on billions
in debt but says it can afford it.
For comparison, The New York Times reports Verizon claims 98.9 million subscribers, while
AT&T has about 77.9 million, and last year Verizon reported $21.8 billion in operating
income.