Verizon Asks Vodafone To Sell Back Stake
Monkey See Money Do
But this is a good thing. It shows Verizon takes AT&T/Cingular seriously and will do what it takes to be #1.
but this is also expected especially since of the T and bell south merger.. now it makes more sense to do it so they can control verizon wireless instead of a 55% control.
well, in the wireless market, verizon wireless will always dominate cingular, but in the landline business that is where verizon will struggle especially if this merger goes through.
that is why verizon should be on a buying spree now..
1. buy out vodafone's stake
2. maybe buy vodafone all together
3. buy out alltel.
4. wait for qwest to go chapter 11 then buy them.
there are others also.
the more possible situation is that verizon would buy out vodafone's stake.
it amazing how you only addressed that statement. perhaps addressing the others i made.
they cant afford it? well yea, but many companies who buy out other companies cant afford them either. do you know how they "buy" them? either 1. issuing shares and/or 2. issuing debt. when T is/was on their buying spree, they bought them with debt and issuing shares. when sprint bought nextel, they bought them with shares and cash. when cingular bought out ATTWS, they made their parents borrow money to pay for them. there are others also in this industry and in others that are the same thing. they barely can pay by "cash" they always use debt, unless the transaction is small.
the point is; anything can happen and if they are already going to "buy" them for $50B might as well add on another $100B to buy the whole company.
as you said and as i said.. anything can happen..
if you are already going to pay $50B why not pay the other $100B?
take a look at http://www.phonescoop.com/news/discuss.php?fm =m&ff=1639&fi=562441
my analysis with regards to the price of the companies by subscribers times by $2000 each subscriber.
they would be a huge company and especially in the wireless game where that is the true money maker becuase wireline is frankly dying a slow death with growth.
combined company based on subscribers times $2000 would be $354B with at least $94B in worldwide assets and finally with worldwide joint ventures and 51%+ ownership.
regarding they have differnt technologies... what about sprint buying ...
A valid case can be put forth that iDen would not have survived at an independent Nextel for more than 5-10 years in the future, simply because iDen did not provide the road map to broadband data rates.
GSM as well as CDMA provide those business cases in HSDPA and EvDO respectively.. Hence discounting the fact that different technologies dont matter considering the sprint nextel merger doesnt work.
Hence in all probability Nextel would have bailed out of iDen into one of the other 2 (and my guess wld be GSM if it were independent, since iDen & GSM are more similar) in a half decade or so...
actually just becuase you have iden doesnt make a differnce because the neccessary bandwidth is there and the speeds are ok, however, they can always overlay it with ev-do rev a, wimax, td-cdma, and other 3g or 4g technologies. nextel would have to spend money to upgrade and overlay their network but they would always do a dual band type device like carriers do now..
doesnt make a difference that voda has different technologies.. remember dual mode/band phones? (cdma/gsm) they do exist.
Verizon wants a strategic relationship with a pan-European carrier, but it doesn't want to own one. Vodafone, T-Mobile, and Orange are pulling back on their investments there and the European Commission is riding them about high roaming rates.
I'm no expert, but I think Verizon only wants to ha...
well, i said that maybe that would happen, becuase frankly it could.
Maybe. As in "maybe" Clint Eastwood is a fairy.
i mentioned that "maybe" that verizon would buy out Vodafone as a whole, not just vodafone's stake. i also said that it could happen, but probably not since anything can happen in this world. ($150B+ isnt so bad) i mean if verizon will be paying $50-60B+ why not add another $100B to buy out the whole company? the logic seems to be there, but would they do it? probably not.
so no need to "yell" at him.
Is there a seperate trading vehicle for VZW? I am almost sure there is none... so probably the 100 billion market cap for the VZ stock is it..
Current VF market cap at the recent exchange rates is around 130 billion..
verizon wireless doesnt have a stock.
how much do you think verizon wireless as a whole is worth?
hence my guestimate would be about 85B and I think your post based on subscribers valuing VZW at about 2K a subscriber kinda makes about the same figures (round about)
but yes, those figures are pretty close..
verizon's assets are more valuable than cingular.. so lets put that in mind. in addition more valuable. (churn and lifetime revenue per user)
i mean combine verizon and vodafone it would be a huge company with worldwide assets and over $372B (it would be more becuase of joint ventures but i didnt count that) and over $94B in assets. (spectrum and towers)
again, verizon's network (landline), cable(dsl) internet isnt even close to what the combined T would have and that is why i said it would be smart to go after the companies who will be spinning off their units or already have them such as qwest. (obviously under chapter 11. lol) alltel would be a ver...
Just to make this point.. Vodafone is probably the world's TOP 10 RETAILERS.. and its not even in the retail business!!!!
Vodafone is the equivalent of 1980's Ma Bell of the wireless world (with no geographical restrictions unlike the old Bell) ..
These 2 statements should give some idea of how BIG the company is...
this is what i said "maybe buy vodafone all together" . maybe is a word that is used to say a 50-50 chance that it could happen. will it happen? probably not. could it? yes.
i know how big vodafone is you dont have to explain it to me, but as mentioned before to the other person who just mentioned about that statement, anything can happen. by the way, you 2 seem to be alike since you dont address any of my other statements i made. perhaps it would be better doing that?
vodafone would be going for about $150B, which isnt too far fetched. (with a 10-15% premium on top of its share price) it could be an all stock deal just like the Bellsouth/T merger, although it would mess up verizon's shares, but...
150+ Billion Dollars (considering the Pound/ Dollar rates remain where they are now) is not that easy for a 100 Billion dollar company to come up with, especially when there is no synergy between the two operations (no wireline for VF, GSM/UMTS for VF vs CDMA for VZW, assuming VZW comes 100% under the Verizon roof). Hence there is ALMOST NO CHANCE (not 50-50 as you say)
Infact Verizon could be better served with buying Alltel wireless/ Sprint Nextel Wireless or maybe even Rogers Canada (i think its CDMA, i cld be wrong) or some Mexican CDMA operator or for that matter even so...
sprint/nextel and verizon merger would never go through unless there would be many divestitutres.. ( you must not read my posts becuase i mentioned this) i also mentioned about alltel.
they dont need to buy any mexican or canadian operator now, they need to focus on their united states carrier that is truely the best, fastest, and the most profitable wireless company.
comcast or time warner could also do some buying.. i heard rumors of a comcast buying ...
sorry... paying another $100B
UK has 2 big-name companies to its credit.. Vodafone, Royal Dutch Shell (well kinda UK) and there are some other big companies such as HSBC but you can probably name all of them in a few minutes..
Considering how Mittal is getting the rap for trying to buy Arcelor, what makes us think that Vodafone, the pride and joy of UK, will not face opposition (and I mean serious opposition) from the citizens of UK, for getting bought by a big-name US company!!!
what about Lenovo buying out IBM's computer business? (lenovo is chinese)
there are others but i cant think of it on the top of my head..
you are making this a big deal just becuase i said anything and maybe...
by the way $150B is based on their share price as of friday plus a premium on top of that divided by their total shares outstanding..
so it isnt undervalued vod shareholders are getting a 10-15% premium, which is standard in takeovers especially in stock.
so could never afford them? you are wrong.. no one buys other companies with cash.. i mentioned this before, they either 1. issue more shares or 2. increase their debt. that is the life of this industry as well as others..
cingular couldnt afford ATTWS..
T def cant be making these purchases they have been doing..
verizon couldnt afford mci and whoever else they bou...
VF is not wireline,
VF is GSM/UMTS/HSDPA
VZW is CDMA/ 1x EVDO (assuming VZW first buys out VF stake in VZW).
plus why would a giant the size of Vodafone Wireless want to invest too much in Qualcomm technology..
fyi; qualcomm and vodafone are actually in hsdpa trials. probably could do their media flow and other technologies..
i said "how do these companies do it? well they hope to get some synergies which they all are going to get and increase their growth which they hope they are going to get.."
i didnt mention about verizon and a vodafone merger.. there probably wouldnt be many synergies, but many of their operations and mangment would be 1 instead of many like they have now.. control would ...
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