Vodafone to breakup Verizon partnership?
26 March 2013 | Mitch Sayers
UK operator Vodafone could be in the market to divest its 45% stake in Verizon Wireless, according to national reports in the UK.
A recent report in the Sunday Times newspaper suggests Vodafone is looking to sell its non-core assets where it does not have a controlling interest. Verizon Communications holds a in the Wireless entity, which was formed after the merger of Bell Atlantic Mobile and Vodafone in April 2000.
Verizon CEO Lowell McAdam has previously said he believes a buy-out of Vodafone’s stake could be “feasible”.
Verizon Wireless is forecasted to make a profit of $34 billion this year which would value the company at between $240 and $300 billion, meaning Vodafone’s stake could be worth up to$135 billion.
Any possible takeover of Vodafone’s stake in Wireless Wireless, given present market value, could be the second highest transaction in the history of US telecoms, second to AOL’s purchase of Time Warner in 2001, valuing at $164 billion.
Capacity reported last year on the potential impact Vodafone’s takeover of Cable&Wireless Worldwide could have on its relationship with Verizon.
The divesting of Vodafone and Verizon Communications would be second in terms of value only to AOL’s purchase of Time Warner in 2001 which was worth $164 billion.
Vodafone declined to comment on the deal.