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Verizon preparing $100 billion bid for Vodafone stake in Verizon Wireless

Verizon Wireless

Verizon Wireless is the combination of Vodafone and Verizon’s joint US venture and has been one of the most successful ventures in mobile history, with the carrier currently number one in the United States.

Impressively, Verizon Wireless has managed to shoot past AT&T, the well known but quite unpopular carrier, in terms of customer feedback. They have also held off opposition from Sprint and T-Mobile.

Verizon Wants All of Verizon Wireless

Now the American company may be prepared to buy Vodafone’s 45% stake in the company, making Verizon the full owner of Verizon Wireless, the company has hired advisors to see if this move is possible.

The two companies had been rumoured to make some sort of merger, but negotiations over valuation have made Verizon restless and they are now working to take the company over.

UKs top provider and second biggest carrier in the world is prepared to listen to offers, although we doubt Vodafone will want this aggressive approach from Verizon to become anything more than an idea.

Verizon Wireless: What’s It Worth?

For Vodafone, this is still a very profitable venture and they will want to keep it that way – the merger allows both companies to settle differences, although it doesn’t boast either company above the other.

Verizon Wireless currently carries about 130 million smartphones in the US and is hitting $30 billion in revenue with $1 billion net income.

Verizon currently makes about $120 billion revenue per year and $2 billion net profit, this deal would take time to finalise and we suspect Verizon will be paying Vodafone back for a while.

Source: Reuters 

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