Deals

Verizon prepping $100B bid to buy more of itself

Image Credit: shane_curcuru/Flickr

Verizon wants to own all of subsidiary Verizon Wireless’ stock. And it’s willing to spend $100 billion in cash and stock to make it happen.

At least, according to a Reuters story tonight that suggests that the communications and carrier company wants to buy out its partner Vodafone, which currently owns 45 percent of the joint venture that is known as Verizon Wireless.

These are not new rumors. As long ago as last month we reported that Verizon no longer wanted its destiny tied to the European carrier. The massive entities had discussed various merger possibilities, apparently, but could not come to agreement on details such as headquarters and leadership structure.

In other words: who leads, and where they live.

Verizon Wireless is the most profitable division, and Verizon looks at it as the focus of wireless communications possibilities beyond phones to corporate or government sensors and networks.

According to Reuters, Verizon’s board will discuss the details next week in advance of the company’s annual shareholder meeting, but there is no reason to believe that Vodafone is interested in any deal.

One of the reasons Vodafone might shy away? A potential tax bill as high as $20 billion.

photo credit: shane_curcuru

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