Vodafone confirmed it’s in talks with Verizon Communications to...
Vodafone confirmed it’s in talks with Verizon Communications to sell its 45 percent ownership of Verizon Wireless, the No. 1 U.S. wireless carrier. Verizon Communications owns 55 percent of Verizon Wireless. Media speculation has ebbed and flowed all year about…
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a possible buyout, which Vodafone noted in a statement Thursday. Although Vodafone has previously said it was open to selling its stake in Verizon Wireless, its statement was the first official confirmation that negotiations were in progress. Vodafone said “there is no certainty that an agreement will be reached” (http://bit.ly/14H1GlC). Verizon Communications declined to comment. A successful deal to sell Verizon Communications full control of Verizon Wireless will require Verizon and Vodafone to adopt two very different outlooks on the U.S. wireless market, wrote telecom analyst Craig Moffett in an email to investors. “Verizon has to strongly be of the view that the performance of the U.S. wireless market in general, and Verizon Wireless specifically, will remain at levels at least consistent with recent history long into the future,” he said. “Vodafone, on the other hand, would have to be of the view that the U.S. wireless market is reaching an inflection point, with growth stagnating, recapitalized competitors driving down returns for others, and with Verizon Wireless unable to improve upon its already by far best-in-class performance.”