It began its operations on April 4rd 2000. The birth of Verizon Wireless followed two years of spirited negotiations in the wake of a competitive marketplace and received regulatory approval within six months. It began trading on the New York Securities exchange on July 3rd 2000 and its shares were traded on the NASDAQ exchange on March 2010 (British Invisibles 2009, pg. 18). Under the partnership, Verizon Communication was to hold 55 per cent of the shares under its subsidiaries GTE Wireless Inc. 30.8% and Atlantic Mobile Systems LLC 24.2%. Vodafone would hold the remaining shares under its subsidiaries PCS Nucleus, L. P holding 6.2% and JV PartnerCo, LLC holding the remaining 38.8%. Verizon wireless went on an expansion spree, acquiring Virginia Wireless by the end of 2006 and Rural Cellular Corporation (Unicel) in July 30th 2007. More mergers were to follow with the acquisition of Ramcell in mid-2007 and Surewest communications on June 5th 2008 and by November 2008, Verizon wireless had consolidated its place as the largest wireless carrier in the United States. Its shares had also risen significantly. More success was achieved on May 8th 2009 when AT&T announced that it would be selling five Centennial Wireless service areas to Verizon wireless (Goldberg 2013, pg. 19). The successful buy out in 2013 that is expected to be completed in 2014 was preceded by many failed attempts to reach an agreement to sell Verizon wireless or to merge the two companies. In 2004, Vodafone consented to selling its stake in Verizon wireless to Verizon Communications if it acquired AT&T Wireless. However, this was not to be as Vodafone failed in its bid. The issue came up once again in a conference in Barcelona in 2009. Apparently disturbed by Vodafone’s lack of control over Verizon Wireless, Vodafone Managing Director, Colao stated that he would view the options of merging with Verizon Communications or selling Vodafone’s stake in Verizon wireless as a means of solving the issue (UK Trade & Investment 2009, pg. 33). Although the partnership between Vodafone and Verizon Communications was characterized by much success and rapid expansion to become the most profitable carrier in the United States, the relationship between the partners was a stormy one with each unsuccessfully attempting to buy out the other. Bickering characterized the shaky relationship as the struggle to control the direction of the carrier took center-stage. Verizon felt that the partnership was preventing its independent operations and marketing strategies especially in areas where Vodafone operated. Many analysts concurred that Vodafone was benefiting more from the partnership in the wake of poor performance in the European and American market. With the two partners providing similar services to the same target market, each of them saw the need to operate independently and make strategic investment and marketing decisions independently. Verizon was also opposed to the idea of paying dividends to Vodafone shareholders at a time when Vodafone was not paying dividends to its shareholders. Vodafone’s sale of ownership of joint venture to Verizon in cash and shares was one of the biggest in corporate history. Under the sale agreement, Vodafone received $130 billion in cash and stock from Verizon Communications in exchange for its 45% stake in Verizon
(Author’s Name) (Institutional Affiliation) VODAFONE’S SALE OF OWNERSHIP OF JOINT VENTURE TO VERIZON a) Briefly discuss the history of the joint venture The joint partnership between Vodafone and Verizon Communications can be traced back to September 1999 when Vodafone Airtouch Plc…
Every individual has to learn the culture of the society he or she is living in so as to live harmoniously. Characteristics of the Chinese culture, how they differ from the American and how they affect negotiation They place very high value on relationships.
ursue a specific objective in which they share revenues, expenses, assets, and management roles. International Joint Ventures (IJVs) involve individuals, companies, or firms from different countries forming a partnership. Globalisation has resulted in the need for collaboration of companies of different countries hence the emergence of multinational companies.
A well clarified objective of purpose will place the International Joint Venture (IJV) in a powerful position. This will result to an efficient management structure that is characterized with accountability, responsibility, employees and organization structure modelling in the partner’s level.
Indeed, this was the start of the emphasis on the need for improved European industrial relations infrastructure (Foreman-Peck, 1999:289). In essence, Quality and efficiency in infrastructure crucially dictates the competitiveness of European Industry. In this, the major concern deviates to energy, communication services, and transport systems.
and Verizon Communications respectively. The telecom giants have made huge profit by offering different products and services to the customers and have satisfied their needs (Holton and Carew, 2013). In the past 10 years they have gone through a number of agreements one of which includes the joint venture between the two giants.
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. Currently, they have more than 403 million customers (Vodafone Group, 2013). On the other hand, Verizon Communications Inc.
A joint venture is an entity formed between two or more parties to undertake economic activity together. The parties agree to create a new entity by both contributing equity, and they then share in the revenues, expenses and control of the enterprise. This is in contrast to a strategic alliance which involves no equity stake by the participants, and is a much less rigid arrangement.
Small firms commonly get together to undertake the industrial goliaths. Similarly, large firms may develop coalition with nimbler and quicker smaller businesses. In such cases, small companies find the benefit of having association with the big names in the industry
In addition, the company performs other services such as close protection of commercial offices, security patrols, multi-family, CCTV monitoring, corporate facilities, and retailing. Subsequently, Syndicate Company offers security