Will More Wireless Consolidation Follow the Verizon Deal?
Sprint Corp. (NYSE:S) Chief Executive Officer Dan Hesse has said that he expects more mergers and acquisitions within the wireless industry in an interview at the IFA Consumer Electronics conference in Berlin on Friday.
The remarks come after British wireless carrier Vodafone (NASDAQ:VOD) announced earlier this week that it would sell its 45 percent stake in U.S. carrier Verizon Wireless to Verizon Communications (NYSE:VZ), Vodafone’s partner in the venture. Verizon will pay $130 billion to buy Vodafone out, the biggest deal in over a decade. Verizon has already started pursuing funding for the deal, which will give it control of the biggest 4G LTE network in the U.S. The companies said they expect the transaction to close in the first quarter of 2014.
According to a report from Bloomberg, Hesse told reporters, “More consolidation in the industry is inevitable as phone carriers need more capacity to continue to invest and improve services. That’s also been reflected in what we’ve seen with Vodafone and Verizon. We should see more deals in the coming future.”