After 14 years together, Verizon and Vodafone are calling it quits. Verizon will buy out Vodafone's 45% stake in Verizon Wireless to gain full control of the company. The two wireless giants have agreed to a deal valued at $130 billion, which includes $58.9 billion in cash, $60.2 billion in Verizon stock, and $11 billion in additional cash from smaller deals. This confirms rumors that began surfacing late last week.


Verizon's board unanimously approved the deal to buy Vodafone's stake in its wireless arm. This will leave Verizon proper with full control of the highly profitable wireless carrier. It has missed out on a large chunk of the profits in recent years, but no more. For its part, Vodafone is handing most of the windfall over to shareholders.

There are a few regulatory hurdles to clear before the deal can be finalized, but it's nothing like when two carriers try to merge (see: T-Mobile and AT&T). Verizon is just getting full ownership of a company that it already had a controlling interest in. However, there could be a federal review of the deal regarding the $60.2 billion in Verizon stock Vodafone is getting. Vodafone is a foreign company, after all. The transaction is expected to close early next year.


Ryan Whitwam
Ryan is a tech/science writer, skeptic, lover of all things electronic, and Android fan. In his spare time he reads golden-age sci-fi and sleeps, but rarely at the same time. His wife tolerates him as few would.

He's the author of a sci-fi novel called The Crooked City, which is available on Amazon and Google Play. http://goo.gl/WQIXBM

  • BigMixxx

    That is a lot of money. A hell of a lot of money. A HELL of a lot of money...

    • Sam Hollis

      Think they'll give me .01%?

      • Justin W

        They'll make you pay .01% on your monthly bill.

      • btod

        hell I'l even take .00001%

    • Chris

      And who said they couldn't afford uncapped data plans?

  • Sam Hollis

    Can anyone explain to me why/how Verizon is paying for their stock with their own stock?

    • duc

      they would pay Verizon (Communications) - mother company- stock to buy Verizon Wireless (a joint venture company) stake.

    • Justin W

      Verizon Communications is paying VZ stock for Verizon Wireless (which is a separate entity). They are essentially trading stock in Verizon Wireless for stock in Verizon Communications.

      • Freak4Dell

        So how much of a stake in VZ will Vodafone now have? $60 billion is about 45% of VZ's current outstanding shares, but that's before factoring in the addition of the full VZW unit into VZ.

        • Justin W

          I'm not sure about that - I couldn't find any info on how many shares (in total) are currently on the market for Verizon, so can't figure out how much of a stake Vodafone has.

  • Lefteris Triantafillou

    Wow, they can buy, like, one third of my country's debt to the IMF/EU/ECB with that money. Now we need to think of a reason for them to do it

    • HopelesslyFaithful

      yea no....

  • Casey Kline

    They can afford this but not the infrastructure for unlimited data.

  • futurejohn

    And suddenly, Verizon started being entirely consumer friendly. There were no more preloaded apps, the Droid line was canceled, every phone released from that day forward was unlocked, and everyone got a massive price cut on their bill.

    Or it'll be business as usual.

    • Tarun Pemmaraju

      Ha, good joke!

  • Brad Medlin

    and 6 months later verizon wireless brings back unlimited data

    said no vzw manager EVER

  • topgun966

    Seriously, how the hell do they get so much money .... I mean wtf. Side note, in 6 months they announce rate hikes cause the company has no money. (IE the board is down to only 8 digit salaries.)