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Vodafone’s Sale Of Ownership Of Joint Venture To Verizon - Essay Example
Vodafone’s sale of ownership of joint venture to Verizon Introduction Vodafone is a United Kingdom (UK) based company that had begun its operation in 1985. Vodafone provides value to its customers through their broadband and fixed lines services…
is a United States (US) based company that is headquartered at New York and provides innovative technology and communication solutions, which enhances the way the customers play, work and live. On September 2013, Verizon Communications has agreed to pay Vodafone Group $130 billion in order to buy the US wireless business. This has been the third largest corporate deal in history. This paper focuses on the deal, highlighting on the history of the joint venture, rationale of the two companies behind the deal, reaction in the stock market, tax consequences and plans of Vodafone with this cash generation.
Brief History of the Joint venture between Vodafone and Verizon
In June 1994, the regional phone company of United States, Bell Atlantic, had formed a partnership in the wireless division with their immediate neighbour, NYNEX, covering almost 55 million customers who were regarded as potential for the organization (Thomson Reuters, 2013). This deal marked the beginning of the organization, Verizon Wireless. In 1996, NYNEX and Bell Atlantic agreed to enter into an outright merger. Then again in the year 1998, GTE and Bell Atlantic agreed to merge together. ...