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It was rumored last week that both Verizon Wireless and Vodafone were having discussions over a possible buyout of the latter’s 45 percent stake in Verizon. Vodafone had confirmed the talks a few days ago. Yesterday it was rumored that both parties might make an official announcement on Monday, which is today. The rumor has turned out to be true. Verizon Wireless has just confirmed the $130 billion deal which will take away the entire Vodafone stake.

This transaction costs Verizon $130 billion, which it will pay primarily in cash and stock. Verizon will pay $58.9 billion in cash to Vodafone, the rest will be covered by common stock to the tune of $60.2 billion. It will be distributed to Vodafone shareholders, subject to a collar arrangement with a floor and cap price of $47 and $51 respectively. In addition to this Verizon will also issue $5 billion in notes to Vodafone and will sell its 23.1 percent stake in Vodafone Omnitel N.V. to Vodafone for $3.5 billion. The remaining $2.5 billion will be a combination of “other consideration.” The transaction has been approved by the boards of directors of both Verizon and Vodafone. Subject to shareholder and regulatory approval, this transaction is expected to be closed in the first quarter of 2014. Once it is closed, Verizon will have 100 percent ownership of the largest wireless carrier in the U.S.

Verizon Confirms $130 Billion Deal With Vodafone original content from Ubergizmo.

Weekend reports were suggesting that Verizon and Vodafone had agreed on a $130 billion deal to buy out the near-half stake in Verizon Wireless. Anyway, as was expected, Verizon has come forward with an announcement confirming the deal. The deal and the dollar amount were indeed accurate and it looks like Vodafone will be parting […]

Vodafone and Verizon might finally be “resolving” their business relationship, according to Reuters: the pair are said to be striking a deal this weekend. The typical folks “familiar with the matter,” say that the firms’ respective boards are voting on a $130 billion buyout that would put Vodafone’s 45 percent stake in the network back in Verizon’s hands. The price has gone up since we last heard about this deal, though the plan is essentially the same — Verizon will finance half of the purchase through bonds and bank loans while covering the rest with cash on hand. Neither Verizon or Vodafone were willing to comment on the report, Reuters stated, but it’s no secret that the two companies have mused over breaking their partnership in the past. We’ll let you know if we hear anything official; until then, check out the source link to get the story from the horse’s mouth.

Update: The Wall Street Journal is reporting that the deal has been finalized behind closed doors, reiterating that an official announcement could come as early as Monday.

Filed under: Verizon

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Source: Reuters, WSJ

Google and Motorola’s Moto X has already been made available on AT&T starting at $199 last week, with the device expected to be made available on additional carriers soon after its release. Verizon announced earlier this week they’ll be selling the Moto X on August 29, but only through their online store. Well – the day is upon us and potential Moto X customers who are Big Red subscribers can now place their orders. (more…)

Moto X Available At Verizon’s Online Store Starting At $199 original content from Ubergizmo.

Vodafone currently owns a significant portion of Verizon Communications. Sources who claim to be familiar with negotiations between Verizon and Vodafone are saying that talks have started up again concerning Verizon possibly buying out Vodafone’s stake in the company. If these sources are accurate, any buyout would cost Verizon a huge amount of money. The […]