Verizon Prepares $100 Billion Bid To Takeover Verizon Wireless

Discussion in 'Android News' started by dgstorm, Apr 25, 2013.

  1. dgstorm
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    dgstorm Editor in Chief Staff Member Premium Member

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    At first blush you might think the title of the story is a mistake, but it turns out it is not. If you didn't know this already, apparently Vodafone still owns 45% of Verizon Wireless, and Verizon only owns a majority stake of 55% of their own wireless company. News from Reuters today shared that Verizon Communications is now planning to change that with a takeover bid of $100 Billion dollars to buyout the rest of Vodafone's shares in VZW.

    Interestingly, it appears that this huge sum is still too low however. Apparently, Vodafone would like to hold out for $135 Billion, but will likely end up taking somewhere between $120-130 Billion at some point in the negotiation. Of course, Verizon is also doing its best to add value to the transaction, and will be doing so by offering to foot some of the eventual tax bill of such a transaction. A deal of this size could incur a tax bill of around $20 Billion, but supposedly, the two companies are working toward getting that bill down to about $5 Billion for Vodafone's end of things. Here's a quote with some additional detail,

    It's amazing to see the amounts of money being thrown around for a deal like this, and it also seems a bit ironic (for those who didn't know this already) that Verizon doesn't actually own all of Verizon Wireless. Share your thoughts.

    Source: Reuters
  2. Hugh Jass
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    Hugh Jass Well-Known Member

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    That's nuts, one company is more valuable than the GDP of most developing nations. :icon_eek:
  3. The Stig 04
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    The Stig 04 Member

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    So these guys have $100billion+ to spend at any given moment and they are still trying to shaft the customer....
  4. kevsgroove
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    kevsgroove Member

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    That's how they came up with $100 billion walking around money. :happy3:
  5. dgstorm
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    dgstorm Editor in Chief Staff Member Premium Member

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    Just for the sake of clarity, Verizon will need to get $50 Billion of that amount financed (borrow it), and much of the rest of it will be paid in stock to Vodafone. Not that this makes a huge difference in your perfectly valid arguments... :)
  6. jspradling7
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    jspradling7 Active Member

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    And the "gov" gets 20 billion for watching one company sell paper to another comapny.
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