How Much Will It Cost Verizon to Go It Alone?
British wireless provider Vodafone (NASDAQ:VOD) confirmed it’s in talks with Verizon Communications (NYSE:VZ) to potentially sell its 45 percent stake in the joint venture Verizon Wireless to the American company.
A short statement from Vodafone released Thursday said: “Vodafone notes the recent press speculation and confirms that it is in discussions with Verizon Communications Inc. regarding the possible disposal of Vodafone’s U.S. group whose principal asset is its 45% interest in Verizon Wireless. There is no certainty that an agreement will be reached.”
According to people familiar with the talks who spoke to Bloomberg, the deal would cost Verizon around $130 billion. Those sources went on to say that Verizon is already looking into financing the purchase — which would give the company complete control over the most profitable wireless carrier in the U.S. — talking to several banks to raise $10 billion each, or enough to finance at least $60 billion. The sources also said an announcement about the deal could be expected as soon as Monday.