Verizon Asks Vodafone To Sell Back Stake
Top message: ????? by sowhatsowhat10
Replying to: Re: ????? by sowhatsowhat10
since then a few things have happened. first leadership of the board of directors has changed. the new director (1) isn't a big fan of vzw's foreign investments and (2) from what rumors say, isn't a big fan of arun sarin, voda's CEO (and one of the few leaders in this industry i genuinely admire).
under new leadership, voda has already put vodfone KK, up for sale. voda kk was previously known as j-phone, and when voda bought them, they were on the bleeding edge of mobile technology, kicking docomo and kddi's behinds. but since the purchase voda has managed to run them into the ground with bad plan after bad plan (sarin isn't in charge of voda KK, and the one time he tried to take charge, not even he had a good plan).
so voda, like docomo when they got out of the ATTWS deal and other foreign carriers, looks set to refocus on their core markets - basically europe.
in addition to the fact that the vzw tie up has brought voda no competitive advantage, i believe voda's main reason for selling off their vzw stake isn't so much to "refocus" as it is to make shareholders happy.
voda KK has been dragging the company down and the european parent has been investing alot of cash in them to try and turn them around with no luck. they've been a sinkhole, sucking money away from the networks that actually make voda money (i.e. EUROPE).
even if voda does manage to sell their japanese service, it will probably be at loss considering what they paid for J-phone, how much they've invested in it since then, and how much money they've lost already. that does not make shareholders happy.
if they can also sell their vzw stake, which they could do at a handsome profit, that would fill the coffers back up again. make shareholders happy. give voda money to invest in their core network, and wouldn't hurt their business or subscribers at all. and verizon actually wanted those shares back anyway. in short, everybody would win.